FX.co ★ Silver Rises to Over 14-Year High

Silver's trading price exceeded $44 an ounce on Thursday, approaching its highest level in 14 years. This surge is primarily attributed to increased industrial demand and decreased physical availability, despite robust US economic indicators that have driven up yields and the dollar. On the demand front, silver's usage in photovoltaic panels and electronics—industries where it is challenging to find a substitute—has risen, bolstering short-term consumption. Regarding supply, silver is predominantly a by-product of base-metal mining, meaning its production cannot easily increase in response to price hikes. Recent disruptions in smelting and processing at key refining hubs have further reduced the availability of refined silver, limited immediate deliverability, and raised premiums for short-term deliveries. However, unexpected positive developments in US economic data this week, including an upward revision of the Q2 GDP to 3.8% and initial jobless claims dropping to their lowest level since July, have limited predictions for monetary easing by the Federal Reserve, thereby restraining further price gains.