Core Viewpoint - Silver prices have surged significantly, with spot prices reaching $39 per ounce and futures prices breaking through $39, marking a 14-year high and a year-to-date increase of over 35% [2][6] Group 1: Price Movements - On July 11, silver spot prices rose by 3.77%, while Comex silver futures increased by 4.74%, with both reaching new highs [2] - Year-to-date, silver has outperformed gold, with silver's increase surpassing 35% compared to gold's 26% [2] - Domestic futures in China saw the main contract rise over 22% from 7506 yuan per kilogram to 9267 yuan per kilogram, setting a record since its listing [2] Group 2: Market Dynamics - The surge in silver prices is attributed to a similar phenomenon observed in the gold market earlier this year, characterized by a high leverage ratio in the silver market, with physical silver corresponding to 250-400 times paper silver [2][6] - The London Bullion Market Association (LBMA) reported that the total freely available silver has dropped to record lows, indicating a precarious situation [6][7] Group 3: Supply and Demand - The silver market is facing a supply-demand gap, with global demand projected to reach 36,700 tons in 2024, while supply is only 31,700 tons, resulting in a shortfall of 5,000 tons [9] - The increasing use of silver in electric vehicles and solar panels is expected to exacerbate this supply-demand imbalance [9] Group 4: Market Indicators - The premium between New York futures silver and London spot silver has exceeded 50 cents, indicating potential market dislocation [7] - The one-month leasing rate for London spot silver has surged from near zero to 4.5%, mirroring trends seen during the earlier gold market turmoil [7]