Spot silver hits record high of $49.58/oz

Spot silver hits record high of $49.58/oz

Spot silver prices surged to a record high of $49.58 per troy ounce on September 12, 2025, driven by a combination of safe-haven bids, expectations of Federal Reserve rate cuts, and concerns over the US government shutdown. The latest peak was supported by a 14 1/2-year high of $48.76/oz reached earlier in the week .

The Japanese Yen's depreciation against the greenback, following the election of Sanae Takaichi as the next Prime Minister, further boosted the safe-haven appeal of silver. Additionally, the ongoing US government shutdown, which has hampered public economic activity and delayed crucial economic data releases, has heightened market uncertainty and increased demand for safe-haven assets .

The Federal Reserve is widely expected to cut interest rates in the coming months. Markets are currently pricing in a 96% chance of a 25 basis point rate cut in October and an 84% chance of another 25 basis point cut in December. These expectations are driven by concerns over the economic impact of the Trump administration’s policies and the need to stimulate economic growth .

Industrial demand for silver also played a significant role in the metal's price increase. Silver is essential in various sectors, including solar energy, electronics, and broader electrification efforts. Despite robust demand, the market continues to face structural deficits, with output falling short of demand .

Silver's role in these critical sectors, coupled with ongoing supply constraints, has contributed to its recent price surge. The white metal's versatility and its use in various industrial applications make it a valuable asset for investors seeking exposure to the broader electrification trend.