Jack Ryan

Updated Thu, Jun 5, 2025, 5:20 AM2 min read

(Bloomberg) — Silver (SI=F) surged to the highest in 13 years, powered by a technical breakout, as investors broaden demand for the safety of precious metals beyond gold.

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Spot silver rose as much as 4.2% above $35.90 an ounce, the highest level since February 2012. The rally was likely driven by a combination of technical momentum, improving fundamentals and broader investor interest, said Alexander Zumpfe, senior trader at German gold refiner Heraeus Group.

“After lagging behind gold for several weeks, silver is now catching up,” Zumpfe said. That suggests “renewed interest from momentum-driven investors who are rotating into silver,” he added.

The two precious metals often move in tandem as geopolitical ructions support demand for assets free from any counterparty. Gold is up 44% in the last 12 months, as an expanding US-led tariff war bolstered its appeal as a haven and central banks maintained elevated levels of buying. Silver, up about 20%, has lagged behind.

The white metal has also been bolstered by significant inflows into silver-backed exchange-traded funds, with holdings up by 2.2 million ounces on Wednesday, according to data compiled by Bloomberg. Money managers also boosted their bullish wagers on Comex silver futures in the week ending May 23.

Silver has a dual character, valued both for its uses as a financial asset and an industrial input, including for clean-energy technologies. The metal is a key ingredient in solar panels, which have grown as a source of demand. Against that backdrop, the market is headed for a fifth year in deficit, according to industry group the Silver Institute.

Meanwhile, reports on Wednesday showed a contraction in US services activity and slower hiring. Treasury yields fell after the prints, with swap traders pricing in two Federal Reserve interest rate cuts in October and December. Lower rates are typically a tailwind for gold and silver, which don’t bear interest.

Spot silver surged 4% to $35.89 an ounce as of 12:19 p.m. in London. The Bloomberg Dollar Spot Index was little changed. Gold gained 0.8%, while platinum and palladium advanced more than 2%.

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