Core Insights - Silver prices are surging towards a record high of over $50 an ounce due to a historic squeeze in the London market [1][3] - The increase in silver prices is driven by significant investment in precious metals as investors seek security amid fiscal uncertainties in the US and concerns over the stock market [2][3] Price Movement - Silver has increased more than 70% this year, significantly outperforming gold [3] - Spot silver traded at $50.45 an ounce, reflecting a 2.4% increase as of 3:26 p.m. London time [6] Market Dynamics - The cost of borrowing silver in London reached an annualized record of 35%, indicating critically low availability of the metal [3][4] - A rush of silver to New York earlier this year, driven by fears of potential US tariffs, has reduced inventories in London [4] Dislocation Effects - The typical premium for futures in New York has turned into a discount of over $2.50 an ounce below spot prices due to tightness in London [4][5] - Traders may buy cheaper metal in the US and ship it to the UK to exploit the price difference, potentially easing the tightness in London [5] Historical Context - The current price surge is reminiscent of the 1980s when the Hunt brothers attempted to corner the silver market, driving prices above $50 before a subsequent crash [6]

Japan’s ongoing political and fiscal uncertainties risk weighing on demand at an auction of 30-year government debt https://t.co/x4iB6yMRXR ...