Silver Hits All-Time High Of $52, Driven By Silver ETF Frenzy, Festive Demand

Silver prices hit an all-time high of $52.50 per ounce, as a short squeeze in London added momentum the rally, according to Bloomberg. The record run of these metals have been fueled by the surging demand for safe-haven assets. Gold also climbed to another record high, adding on the eighth weel of straight gains.

Concerns about a lack of liquidity in London have sparked a worldwide hunt for silver, with benchmark prices soaring to near-unprecedented levels over New York,, as reported by Bloomberg. That’s prompting some traders to book cargo slots on transatlantic flights for silver bars, an expensive mode of transport typically reserved for gold, to profit off higher prices in London.

A jump in demand from India in recent weeks has drawn down the supply of available bars to trade in London. This comes after concerns that the metal could be hit with US tariffs had floated.

"The shortage in the physical market as Silver ETF demand increased and AMCs are buying silver against the units they offered and need to store in their vault. Demand for physical jewellry and products are is also there due to festival season," according to Anuj Gupta, director of YA Wealth Global.

The strong investor appetite for silver is reflected in the record-breaking inflow data from AMFI. Net inflows into Silver ETFs in September hit an all-time high of Rs 5,341.67 crore.

This surge pushed the total Assets Under Management of Silver ETFs to Rs 36,460.94 crore in September, significantly up from the Rs 26,292.34 crore recorded in August. The month of August saw inflows of Rs 1,759 crore.

Zooming out to a global level, investors were also weighing the outlook for the Fed’s monetary easing path ahead of the central bank’s next interest-rate decision that is expected later this month. Lower borrowing costs then to benefit precious metals, which don’t pay interest.