Summary
- Bloomberg reported that international silver prices surpassed $60 per ounce for the first time in history.
- It stated that expectations of a policy rate cut along with a shortage in the physical market stimulated investor demand.
- It reported that silver prices have more than doubled this year and that inventories in China are at their lowest level in 10 years.
International silver prices have surpassed $60 per ounce for the first time in history.
According to Bloomberg News, as of 3:55 p.m. on the 9th (local time), silver was up 4.5% at $60.77 per ounce.
The rise in silver prices is attributed to expectations of a rate cut by the U.S. Federal Reserve. Financial markets expect the Fed to lower its policy rate by 0.25% point at the two-day Federal Open Market Committee (FOMC) meeting on the 9th, despite divisions among committee members.
Rona O'Connell, head of research at StoneX Financial, said, "Investors were certainly expecting a rate cut."
Silver prices have more than doubled this year, outpacing the rise in gold prices (60%). The silver price rally is attributed to a shortage in the physical market and a surge in investor demand.
Last October, the London market experienced historic supply pressure due to a surge in demand from India, considered the world's largest consumer of silver, and silver-backed exchange-traded funds (ETFs).
In recent weeks, this supply pressure has eased somewhat as more volumes were transported to London vaults. However, supply constraints remain in other regions, with inventories in China at their lowest level in 10 years.
Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
