FX.co ★ Silver Hits 13-Year Highs

Silver prices soared past $37.20 per ounce on Wednesday, marking their highest point since 2012. This surge is attributed to robust industrial demand, ongoing supply shortages, and heightened safe-haven buying amid geopolitical tensions. The metal's use has grown significantly in areas like solar power, electronics, and overall electrification, now comprising more than half of global demand, which underscores its enduring structural significance. Meanwhile, the silver market is experiencing its fifth consecutive year of shortfall. Although the Silver Institute anticipates a 21% reduction in this deficit by 2025, persistent supply limitations continue to uphold high price levels. Geopolitical tensions further enhance silver's attractiveness, particularly as US President Donald Trump has called for Iran's "unconditional surrender" and issued threats against Supreme Leader Khamenei. In parallel, investors are paying close attention to the US Federal Reserve's impending policy decision expected today, with widespread expectation for interest rates to remain steady.