Topline
Silver prices rose to a record high Tuesday, surpassing the $60 milestone for the first time as the precious metal has outpaced gold this year amid a global supply squeeze and another expected interest rate cut by the Federal Reserve.
The price for the precious metal has doubled this year amid a global inventory squeeze.
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Key Facts
Spot silver rose about 4% over the last day to around $60.82 per troy ounce on New York’s Commodity Exchange as of Tuesday afternoon, while silver futures jumped more than 4% to nearly $61, after earlier hitting an intraday high of $61.06.
The latest surge in silver prices comes as traders are pricing in 87% odds of the Federal Reserve lowering interest rates by a quarter-point Wednesday, according to CME’s FedWatch tool, which would cut rates to between 3.5% and 3.75%—an uptick in precious metal prices often coincides with reduced interest rates and a weaker U.S. dollar.
The U.S. dollar index has dropped 8.5% this year, including a 0.5% decline over the last month.
Silver was added to the U.S. Geological Survey’s list of critical minerals in November, indicating the metal is “vital” to the U.S. economy and faces potential risks from disrupted supply chains, reportedly signaling to investors that silver may face tariffs in the U.S. amid dwindling global inventories.
Supply in silver’s global trading hub, London, disappeared earlier this year: Anant Jatia, Greenland Investment Management’s chief investment officer, told Bloomberg there was “no liquidity available” in October, adding, “What we are seeing in silver is entirely unprecedented.”
Big Number
Nearly 109%. That’s how much spot silver has increased this year, outpacing gold, which has surged 60% while setting several milestones. Spot gold has increased just 0.4% over the last day to around $4,226, after hitting an all-time high above $4,381 in October. Spot platinum has also outpaced gold, rallying 86% as demand for electric vehicles has lifted platinum’s value in recent years, while global supply declines.
Surprising Fact
Despite silver’s record-setting year, Wall Street has warned that gold may still be the safer investment. Goldman Sachs wrote in October it expects silver to experience “more volatility and downside price risk,” while gold is a more practical investment, as the metal is backed by demand from central banks and remains a scarcer resource.
Key Background
Goldman Sachs analyst Lina Thompson wrote earlier this year that precious metals have been boosted in 2025 during periods of “elevated” economic and policy uncertainty. Gold prices have surged to new milestones, passing the $3,000 and $4,000 thresholds in March and October, respectively, while silver broke an earlier record of $49.95 per ounce set in January 1980. Gold’s rally has coincided with record-breaking sell-offs, with traders profiting from this year’s surge: Gold futures dropped by more than 5% after hitting a new all-time high in October, as Standard Chartered wrote the “universe of investors” for precious metals had “expanded rapidly” this year.
