Silver has extended its rally and is now trading just shy of $70 an ounce, a level few would have predicted at the start of the year. By 10:45 GMT, spot silver was trading at $69.67, up 0.85% on the day and firmly in record territory.
Silver is up around 139% so far this year, comfortably outperforming gold’s 68% gain. Strong investment demand, its inclusion on the US critical minerals list and aggressive momentum buying have all played their part. Exchange-traded product inflows have now surpassed 4,000 tonnes, underlining just how crowded the trade has become.
That positioning brings risks. Silver is technically overbought and low year-end liquidity could exaggerate price swings. Even so, dips continue to attract buyers while real yields remain low and physical supply stays tight. The gold silver ratio has collapsed to just 64 ounces, down from 105 in April, a clear signal of silver’s recent dominance.
Some traders will inevitably focus on that ratio, but history suggests the relationship will loosen once the current febrile mood fades. When that happens, silver is likely to decouple from gold and, over time, revert to being the weaker of the two. For now though, momentum remains firmly in silver’s favour.
Supply constraints sit at the heart of the move. Latin American mines, which produce more than half of global silver output, are struggling with declining reserves and falling ore quality. Mexico, responsible for roughly a quarter of supply, has seen sharp production drops, while Peru, Bolivia and Chile face similar challenges. Political uncertainty and tighter regulation have left little appetite for fresh investment.
At the same time, industrial demand is accelerating. Silver’s conductivity makes it critical for solar panels, electric vehicles and AI data centres. The global push into renewables and data infrastructure has locked silver into the technologies shaping the next decade.
Investor demand has amplified everything. Tight London spot markets, record buying from China and India, geopolitical tensions and growing expectations of US interest rate cuts have all added to the surge.
Some analysts see silver pushing towards $75 next year, although its small and volatile market means sharp reversals remain a real risk.