Perfect storm of factors propels silver to record high above $65/oz

Core Insights - Silver has reached a record high price of $66.87 per ounce, marking a more than 120% increase this year, positioning it for its best annual performance on record since 1982 [2][3] - The surge in silver prices is primarily driven by strong investment demand, speculation, and a favorable fundamental backdrop, including a persistent supply deficit and robust demand from sectors like artificial intelligence, solar energy, and electric vehicles [3][4] Investment Demand and Market Dynamics - The inclusion of silver on the U.S. critical minerals list has bolstered its prices, alongside concerns about potential tariffs that led to liquidity tightness in the London spot market [5] - Demand from major markets such as India and China, combined with momentum buying, has created a favorable environment for silver [5][6] Future Price Projections - Analysts predict that silver prices could rise to approximately $75 per ounce by the end of next year, supported by macroeconomic factors and potential U.S. interest rate cuts [4][6] - Some analysts remain optimistic about silver breaking the $70 per ounce milestone next year, driven by increased trading volumes and open interest in the market [6] Volatility and Market Risks - Despite the bullish outlook, silver is noted for its historical volatility, with potential for steep corrections, particularly in correlation with gold prices [7]