Silver Hits Record High with 100% Price Increase This Year, Far Outpacing Gold

Core Insights - The price of silver has reached an all-time high, driven by tight supply and expectations for future interest rate cuts [1][2][6] - Silver prices have doubled since the beginning of the year, significantly outpacing gold's 60% increase [1][3] - Limited supply and rising investor demand are key factors in silver's price surge, with leasing costs for silver at their highest since 2002 [1][3] Supply and Demand Dynamics - The current supply of silver available for industrial use is reported to be the tightest on record, contributing to the price increase [1][3] - Deutsche Bank forecasts that demand from investors will continue to grow, further straining industrial supply [3][6] - Expectations of Federal Reserve interest rate cuts are anticipated to boost demand for silver and gold as non-yielding assets [3][6] Future Projections - Deutsche Bank predicts that exchange-traded funds will hold approximately 1.1 billion troy ounces of silver by the end of 2026, surpassing previous records [3][6] - The average price of silver is expected to rise to about $55 per ounce next year, up from around $38 this year [7] - Anticipated demand for silver in green energy technologies, such as solar energy and electric vehicle batteries, is expected to further support price increases [7]