Silver soared to its highest level in over a decade on Wednesday, driven by a combination of technical momentum, improving fundamentals, and growing investor demand for precious metals beyond gold.
Spot silver climbed as much as 4.5% to $36.06 per ounce, its highest point since February 2012. By late afternoon in New York, it was up 3.3% at $35.65.
Analysts point to a technical breakout and rising investor appetite as key drivers of the rally. “After lagging behind gold for several weeks, silver is now catching up,” said Alexander Zumpfe, senior trader at German gold refiner Heraeus Group. “This reflects renewed interest from momentum-driven investors rotating into silver.”
Although gold and silver often trade in tandem, the white metal has underperformed over the past year. Gold prices have jumped 42% in the last 12 months, buoyed by geopolitical tensions, a U.S.-led trade war, and strong central bank demand. Silver has gained about 19% over the same period but now appears to be playing catch-up.
Investor activity in silver-backed exchange-traded funds (ETFs) has also ramped up. Bloomberg data show ETF holdings rose by 2.2 million ounces on Wednesday. Meanwhile, money managers increased their net long positions in Comex silver futures for the week ending May 23, signaling growing bullish sentiment.
Silver’s dual role as both a precious metal and an industrial commodity is enhancing its appeal. It plays a vital role in clean energy technologies, particularly solar panels—a sector seeing steady growth. According to the Silver Institute, global demand is on track to outpace supply for a fifth consecutive year.
In the broader macroeconomic context, weak U.S. economic data added to silver’s tailwinds. Reports on Wednesday showed a slowdown in services activity and hiring, pushing Treasury yields lower. Swap markets now anticipate two Federal Reserve interest rate cuts, one in October and another in December. Lower interest rates typically benefit non-yielding assets like gold and silver.
Elsewhere in the precious metals market, gold slipped 0.5%, while platinum and palladium posted gains. The Bloomberg Dollar Spot Index remained largely unchanged.
As investor focus broadens beyond gold, silver’s resurgence underscores its growing role in both safe-haven and industrial investment strategies.
