- In the international precious metals market, silver prices exceeded $80 per ounce for the first time ever, rising 178% this year.
- Copper prices also hit record highs amid supply pressures and tariff uncertainty, but analysts warned of weakening actual demand in China and rising volatility risks.
- A Saxo strategist still views the overall outlook for the precious metals market as positive, while urging caution about short-term volatility and risks.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Silver soars 178% this year, surpassing gold's 72% surge
The international silver price has, for the first time ever, exceeded $80 per ounce. Copper prices also at one point approached $13,000 per tonne, surpassing previous record highs.
Prices of gold and platinum, among others, reversed after reaching record highs. Gold fell 0.45%, but having set multiple record highs this year, it has risen 72% year-to-date.
On the 29th (local time) on the London Metal Exchange (LME), spot silver briefly surpassed the record high of $80 per ounce and then fluctuated. Speculative trading and expectations of supply shortages fueled the price rise.
The spot copper price, shortly after the LME opened, surged as much as 6.6% to exceed $12,900 per tonne, marking a new record. By 10:14 a.m. London time, the gain had narrowed to the 2% range, and it was trading at $12,428.50 per tonne. On the New York Comex market, copper futures fell 2%.
The spot gold price fell 1.2% to $4,479.42 per ounce.
Charu Chanana, Saxo's chief investment strategist, pointed out that "a combination of rate cuts and hedging demand against geopolitical and fiscal uncertainty has driven up precious metals prices". He explained that concerns about supply shortages further amplified price movements.
However, he emphasized that with silver having surged vertically by 178%, the risk of increased volatility has also grown. He added that, in the short term, technical factors and position-related risks exist.
Nonetheless, he said, "The overall outlook for the precious metals market remains positive due to fiscal and geopolitical instability and continued demand for investment diversification." In other words, he explained that if prices fall, long-term investors may see it as an opportunity to increase their allocation.
This year's rally in copper is set to be the strongest since 2009. The rise is attributed to supply pressures from uncertainty over U.S. tariffs and large-scale mine shutdowns. LME prices rose more than 10% during December. This was due to expectations of a copper supply shortage as investors sought to accumulate large amounts of copper in preparation for possible U.S. tariff imposition.
Some analysts warned that prices have risen excessively as actual consumption in China, the largest copper consumer, weakens.
Wu Kunjin, head of nonferrous metals research at Minmetal Futures, said, "Some Chinese processing plants that buy copper and are sensitive to price fluctuations have reduced production or halted it entirely following the recent price surge."
President Trump is expected to decide by mid-next year whether to impose import tariffs on refined copper.
Kim Jeong-ah, guest reporter kja@hankyung.com
