Silver hits record high at $64.3 – Commerzbank

The price of Silver is currently skyrocketing. Yesterday, the price reached a new record high of $64.3 per ounce, Commerzbank’s commodity analyst Carsten Fritsch notes.

Prices surge 120% YTD, strongest gain since 1979

“Since the beginning of the week, the price has risen by almost 10%, and by 27% over the last three weeks. The increase since the beginning of the year now stands at 120%. This means that Silver is on track for its strongest annual gain since 1979. The Gold/Silver ratio fell below 67 yesterday, its lowest level since June 2021, putting it only slightly above the average for the past 50 years.”

“The rise is being driven by a combination of tense market conditions, reflected in low inventories in China and a decline in Silver inventories on the Comex, even though these are still higher than at the beginning of the year. In addition, ETF purchases have recently picked up again, as reflected in the 1,145-ton increase in Silver ETF holdings within a month as recorded by Bloomberg.”

“However, the price increase has become excessive, which calls for caution. In the longer term, the fundamental outlook for Silver remains positive. This week, the Silver Institute published a report on Silver demand for industrial applications, which forecasts a sharp rise in Silver demand for photovoltaics, electromobility, and data centers/artificial intelligence in the coming years.”