How an epic short squeeze drove silver's first record in 45 years

Core Insights - Silver prices surged to an all-time high of $53.55 per ounce, driven by trade uncertainty and supply shortages, marking a 75% year-to-date increase [1][7] - Gold prices also rose significantly, increasing nearly 60% this year and surpassing $4,000 per ounce for the first time [2] - The price rise of silver is outpacing that of gold due to tightening inventory levels, particularly in London [3] Market Dynamics - A short squeeze occurred as traders who had bet on falling prices were forced to buy silver at higher prices, further driving up costs [4][5] - Ongoing trade tensions, including tariffs announced by President Trump, have led investors to seek safe-haven assets like silver and gold [5][6] - The U.S. government shutdown and expectations of future interest rate cuts by the Federal Reserve have contributed to the rising prices of precious metals [6] Future Outlook - Analysts from Goldman Sachs predict that silver prices will continue to rise in the medium term as potential Fed rate cuts attract more private investors to gold, which will subsequently lift silver prices [9]