Silver

Silver surges, the won sinks and markets recalculate

What does the Fed’s new “neutral rate” mean for Asia? Plus, silver’s boom, Korea’s rally, and Nvidia’s China chip deal.

The price of silver hit US$63.86 per ounce on Dec 10, nearly double its level a year ago, after the Fed trimmed rates by 25 basis points.
THE BROAD VIEW

Is silver the new gold?

The surge in the precious metal’s price could have ominous implications for the markets

Silver prices have roughly doubled this year, outpacing a 60% rise in gold.

Silver hits fresh record as strong ETF inflows sustain rally

Global demand for the metal has outpaced output from mines for five consecutive years

The rally in silver, which rose more than 8% over the previous two trading sessions, has been fuelled by bets on prolonged supply tightness.

Silver retreats from record high on overheating concerns

SILVER retreated from a record high on Tuesday (Dec 2), with a key technical indicator showing that a six-day rally has taken it into overbought territory. Gold also edged down.

Precious metals have also been boosted by increased expectations that the Federal Reserve will cut interest rates in December.

Silver jumps to record high on supply tightness, rate-cut hopes

Markets are fully pricing in a quarter-point rate cut on continued weakness in the American labour market and a series of dovish comments by Fed officials

The shutdown of India, the second-biggest gold buyer, for the Diwali festival has also drained the market of significant liquidity.

Gold and silver post steepest drops in years as rally cools

A stronger US dollar is also reducing the appeal of precious metals

Concerns about a lack of liquidity in London have sparked a worldwide hunt for silver, with benchmark prices soaring to near-unprecedented levels over New York.

Silver hits all-time high as London squeeze upends market

Demand for havens has also been aided by recurrent US-China trade tensions, threats to the Fed’s independence, and a US government shutdown