FX.co ★ Silver Surges to Record High

Silver prices continue to surge, nearing a historic $55 per ounce as concerns about supply constraints intensify and the likelihood of further interest rate reductions by the Federal Reserve heightens. Chinese silver inventories have plummeted to their lowest levels in ten years, following substantial shipments to London driven by a supply pinch. Concurrently, China’s silver exports reached an unprecedented 660 tonnes in October. On the monetary policy front, the market is currently pricing in about an 85% chance of a third interest rate cut by the Fed in December, with expectations of three more by the close of 2026. These market forecasts have been bolstered by reports suggesting that Kevin Hassett, the Director of the White House National Economic Council, is the frontrunner to become the next Fed Chair. His potential appointment is viewed as consistent with President Donald Trump’s inclination for lower interest rates. Since October, silver prices have frequently tested record highs, fueled by global economic uncertainty, the potential for a more accommodative monetary policy, and a contracting physical supply, all of which have increased investor demand.