Silver Prices 'Not Going Back' from New Record Highs on Supply-Demand Deficit
Tuesday, 6/10/2025 15:40
GOLD RALLIED and silver steadied at new all-time and multi-year record prices in Shanghai, Mumbai and London on Tuesday, while fellow industrial precious metal platinum also extended its sudden jump.
With the more
industrial precious metals now outpacing 'safe haven' gold, silver priced in US Dollars rose to a fresh 13-year high above $36.75 per Troy ounce at London's midday market-clearing auction, its highest USD benchmark since the 1-day spike to $37 of 29 February 2012.
Silver prices in Euro terms held at 8-month highs above €32 per Troy ounce, while the UK Pound price of silver topped £27 for the first time since its all-time peak at £30 per ounce in April 2011.
Silver futures on Mumbai's MCX exchange set new record highs above 1 Lakh Rupees per kilo, and bullion traded on the Shanghai Gold Exchange set a series record high of ¥8,890 per kilogram.
"Because of
silver's market deficit" between global supply and demand, "silver prices are only going to go up by 2030. There is no going back," says Arun Misra, CEO of Hindustan Zinc, the metal's 4th largest mining producer.
"If I have to do crystal ball gazing, I'm looking at $41-42 per ounce by the start of 2027."
"Silver has been in a persistent market deficit since 2019," says a note from Belgian refining specialists Umicore, quoting Canadian bank BMO, "due to demand from the solar sector, where capacity growth has been consistently underestimated for almost 20 years."
Specialist consultancy
Metals Focus this spring forecast silver's global demand would outstrip total supply by more than 11% in 2025, the smallest such gap since 2021 but the 7th year of overall market deficit when exchange-traded silver ETF investment products are included.
Monday's fresh jump in the price of silver saw the giant iShares bullion-backed ETF product (NYSEArca: SLV) shrink for the first time since mid-May after investor inflows had swollen it to the largest size so far this year.
Trading volumes in US Comex silver futures and Nymex platinum derivatives were little changed yesterday, contrasting in a plunge for Comex gold futures volumes, which dropped to the lowest since New Year's Eve.
Today's new series high for China's SGE silver price in Yuan terms saw the Shanghai premium above comparable London quotes drop to a 7-week low of $1.90 per Troy ounce.
One-month lease rates for silver bullion in London − heart of precious metal trading and storage worldwide − then rose to 0.72% per annum, up from 0.60% on Monday at the highest annualized borrowing cost since the end of April.
Gold lease rates held negative again, costing would-be lenders 0.15% annualized even after accounting for the bank interest they would make on the cash value of their bullion loan and suggesting plentiful supply of the 'safe haven' metal.
Platinum 1-month lease rates also edged lower, down 10 basis points to 14.42% from Monday's fresh all-time record.
Giant global bank and London bullion clearer HSBC says the silver surge is due to "risk appetite" returning after the Trump tariffs uncertainty of January to April.
"Silver has surged to the highest levels in over a decade on a confluence of economic, industrial, and geopolitical factors," says analysis from Indian brokerage Reliance Securities, citing "weakened US Dollar and anticipated [Fed] interest rate cuts, robust industrial demand, supply constraints and market deficit, safe-haven appeal amid geopolitical uncertainties and investors diversifying portfolios" as "catalysts to the rally."
With autocat and industrial precious metal platinum peaking above $1227 per Troy ounce on Tuesday, the highest since May 2021, the price of gold rallied back to $3340 in London trade.
Down 4.5% from mid-April's
current all-time top of $3500 gold, that put the price of bullion in US Dollar terms 1.4% above yesterday's brief 1-week low.
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