Core Viewpoint - The price of silver has reached a historic high, surpassing $57 per ounce, with a year-to-date increase of over 90%, significantly outperforming gold [1] Market Conditions - The market anticipates a 87.4% probability of a 25 basis point rate cut by the Federal Reserve in December, which supports the silver and precious metals market [1] - The potential appointment of a dovish candidate, Harker, as the next Federal Reserve Chair further boosts confidence in a low-interest-rate environment [1] Supply and Demand Dynamics - There has been a consistent supply shortage in silver due to declining production levels, with global exchange silver inventories at nearly a decade low [1] - Industrial demand for silver, particularly from sectors like photovoltaics and electric vehicles, continues to grow, exacerbating the tightness in the physical market [1] - Short-term leasing rates for silver have surged, indicating a significant supply shortage in the market [1] Price Valuation - The current gold-to-silver price ratio is approximately 75:1, which is notably higher than the 20-year average of 60:1, suggesting that silver is relatively undervalued within the precious metals sector [1] - Bank of America has raised its silver price target for 2026 to $65 per ounce [1]

Core Viewpoint - The price of silver has reached a historic high, surpassing $57 per ounce, driven by expectations of interest rate cuts by the Federal Reserve and supply-demand dynamics in the market [1] Market Dynamics - As of December 1, during Asian trading hours, London spot silver prices hit $57.7 per ounce, reflecting a 2.3% increase [1] - Year-to-date, international silver prices have risen over 90%, significantly outperforming gold [1] Federal Reserve Influence - Market expectations for a 25 basis point rate cut by the Federal Reserve in December stand at 87.4%, providing strong support for silver and the broader precious metals market [1] - The potential appointment of a dovish candidate, Haskett, as the next Federal Reserve Chair further boosts confidence in a low-interest-rate environment [1] Supply and Demand Factors - A persistent supply shortage has emerged due to declining silver production in recent years [1] - Global silver inventories at exchanges have fallen to near a decade low, while demand from industrial sectors like photovoltaics and electric vehicles continues to grow, intensifying market tightness [1] - In the leasing market, short-term silver leasing rates have surged, highlighting the scarcity of silver supply [1] Valuation Insights - The current gold-to-silver price ratio is approximately 75:1, significantly higher than the 20-year average of 60:1, indicating that silver may be undervalued within the precious metals sector [1] - Bank of America has raised its silver price target for 2026 to $65 per ounce [1]