Silver Sets Record High
Silver surged toward $60 per ounce on Tuesday as expectations of an imminent 25 bp Fed cut met a pronounced squeeze in the physical market. Futures pricing keeps real policy rates on a path that favors precious metals even though stronger labor data cloud the medium term outlook. Industrial demand has risen sharply, led by solar panels, electric vehicles and electronics, while mine production has repeatedly failed to keep pace with consumption, creating a structural deficit. That shortfall showed up in the market plumbing, with visible draws in benchmark stocks, constrained London and spot availability and large inflows into silver-backed ETFs, which together amplified buying and pushed prices to new highs. A more hawkish Fed signal or a sudden increase in mine output would check gains, but for now physical scarcity and heavy institutional demand are the main engines of the rally.