Highest Recorded Silver Cost
In the past few years, the silver market has seen a significant uptick in prices, with the white metal reaching a 13-year high in June 2021. This surge can be attributed to a combination of economic uncertainty, geopolitical events, and increased demand for the precious metal.
The upward trend in silver prices started in mid-2020, spurred on by the economic uncertainty surrounding the COVID-19 pandemic. As investors sought safe-haven assets, precious metals like silver became increasingly popular. This trend was further bolstered by the Trump administration's tariff policies, which benefited safe-haven assets.
On June 5, the silver price rose to a 13-year high of US$36.05 in early morning trading. By June 16, the white metal had broken through the US$37 mark for the first time since May 2011. This surge in price was not without its challenges, as there were concerns that the threat of tariffs could weaken industrial demand and cool price gains in the silver market.
However, these concerns were short-lived. Increasing geopolitical strife in the Middle East and Russia-Ukraine, coupled with a positive outlook for China's solar power industry, proved price positive for both silver's precious metals and industrial angles.
Looking ahead, analysts predict a continued deficit in the silver market. The silver market is expected to experience a substantial deficit of 117.6 million ounces in 2025, amounting to the sixth straight year of supply shortage for the metal. Much of the growth in global silver mine production is expected to come out of Mexico in 2025.
It's important to note that the all-time high price for silver was not reached honestly. The Hunt brothers attempted to corner the market in the late 1970s, causing the silver price to plunge to US$10.80 on March 27, 1980, an event known as Silver Thursday. The record silver price wasn't tested again until April 2011, when it reached US$47.94.
Despite these historical events, the silver market remains a significant player in the global economy. The silver price overtook the US$39 level to reach US$39.24 on July 22, 2021, a testament to the continued interest and demand for this versatile metal.
As we move into the future, it will be interesting to see how the silver market continues to evolve and respond to global events. With increasing demand and a projected supply shortage, it's clear that silver will remain a valuable asset for investors and industries alike.
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