'Making Money Thanks to Trump' Cheers…Highest in 14 Years 'Frenzied Run'

Silver prices hit highest in 14 years "Why?"

$40 per ounce for the first time since 2011

The international price of silver has exceeded $40 per ounce for the first time since 2011. The reason for the rise in silver prices is that expectations of a rate cut by the U.S. Federal Reserve (Fed) and instability in international affairs have combined to strengthen demand for safe-haven assets.

On the 1st (local time), according to Bloomberg, in the New York spot market in the U.S., the price of silver recorded $40.29 per ounce, up 1.4% from the previous day during the session. This is the highest level in 14 years since 2011, and silver prices have risen more than 40% so far this year.

Recently, U.S. President Donald Trump has been pressuring the Fed to loosen monetary policy, and with forecasts that this week’s employment data will be weak, the possibility of a Fed rate cut has increased. As a result, the appeal of investing in precious metals, which do not yield interest, has risen.

In fact, other precious metals such as gold, platinum, and palladium are also showing concurrent upward trends. Gold also rose 0.7% that day, marking its highest level since April when it recorded a record high.

Political uncertainty within the U.S. and international tensions such as U.S.-China conflicts are also driving investors toward safe-haven assets.

Investment demand is also increasing rapidly. Silver-backed exchange-traded funds (ETFs) have seen net inflows for seven consecutive months through last month, setting the longest streak since 2020. Accordingly, Bloomberg reported that freely tradable silver inventories on the London spot exchange are also rapidly decreasing.

Jang Ji-min, contributing reporter, Hankyung.com newsinfo@hankyung.com