Silver Hits $60 For The First Time—Here's Why Prices Are Outpacing Gold

Core Viewpoint - Silver prices have surged to a record high, surpassing $60 per troy ounce, driven by a global supply squeeze and anticipated interest rate cuts by the Federal Reserve [1][2]. Group 1: Price Movement - Spot silver rose approximately 4% to around $60.82 per troy ounce, while silver futures increased over 4% to nearly $61, reaching an intraday high of $61.06 [2]. - The price of silver has doubled this year, significantly outpacing gold [1]. Group 2: Economic Factors - Traders are pricing in an 87% probability of the Federal Reserve lowering interest rates by a quarter-point, which would reduce rates to between 3.5% and 3.75% [3]. - The U.S. dollar index has decreased by 8.5% this year, including a 0.5% decline in the last month, which typically correlates with rising precious metal prices [3]. Group 3: Supply Chain and Market Dynamics - Silver has been classified as a critical mineral by the U.S. Geological Survey, indicating its importance to the U.S. economy and potential risks from supply chain disruptions [4]. - Reports indicate a lack of liquidity in the silver market, particularly in London, with claims that the current market conditions are unprecedented [5].