Silver Shatters Records as Supply Crunch Meets Geopolitical Storm

The price of silver surged to an unprecedented peak yesterday, closing at a historic high of $94.48 per ounce. This remarkable rally is fueled by a powerful combination of escalating geopolitical tensions and a severe, long-term physical shortage. With visible inventories dwindling, the psychologically significant $100 threshold is now within striking distance.

Key metrics underscore the scale of the move:

• Previous Session Close: $94.48 USD (Record High)
• Year-to-Date Performance: +30.75 %
• Gain from 52-Week Low: +101.48 %
• 30-Day Volatility: 66.27 %

Beyond the headlines, a fundamental supply crisis provides a solid foundation for higher prices. The global silver market has been in a cumulative deficit since 2021, with the shortfall reaching approximately 820 million ounces. Surging industrial consumption, particularly from solar panel manufacturers and electric vehicle producers, continues to outstrip available supply.

Conditions in the physical market are showing acute stress. Available inventories tracked by the London Bullion Market Association (LBMA) have contracted to around 155 million ounces. Simultaneously, leasing rates for silver have skyrocketed to an unprecedented 8%, a clear indicator of tightness and frantic demand for immediate metal.

Should investors sell immediately? Or is it worth buying Silber Preis?

Geopolitical Tensions Ignite Demand

The immediate catalyst for the latest buying frenzy is a fresh geopolitical flashpoint. Markets are growing increasingly nervous after former U.S. President Donald Trump threatened eight European nations with punitive tariffs if they obstruct his plans concerning Greenland. The prospect of these duties potentially rising to 25% by June is driving a flight into hard assets.

Countermeasures are already under discussion in Brussels, ranging from reviving old tariff proposals to more drastic steps like the mobilization of U.S. bond holdings. This uncertainty is funneling substantial investor capital into tangible commodities. Although a temporary U.S. exemption for silver from import tariffs caused volatile swings last week, the overarching bullish trend remains firmly intact.

China's Export Policy Tightens the Squeeze

A new policy from China is exacerbating the global supply tightness. Since the start of the year, Beijing has reclassified silver as a strategic material and imposed restrictions on its export. Given China's role as a controller of a significant portion of worldwide exports, this move is fragmenting the market. In Shanghai, silver is already trading at a substantial premium, with prices equivalent to roughly $104 per ounce.

Having outperformed most major asset classes with its 30%+ gain this year, silver's momentum shows no signs of abating. If the current geopolitical and fundamental pressures persist, the key resistance zone between $98 and $100 is likely to be tested imminently. A decisive break above this barrier would solidify a lasting revaluation for the white metal.