Silver hits new highs again, strong ETF inflows support the rally.

Silver prices hit a record high during Friday trading and marked a second consecutive week of gains, with strong ETF inflows adding more momentum to the rally. On Friday, spot silver rose as much as 3.9%, reaching a historic high of $59.33 per ounce. (Silver breaks through $59 mark, setting a new record high) Capital inflows into silver ETFs have become a key driver of this rally. As of Thursday, in just four trading days, inflows into silver ETFs have already set the highest weekly record since July. Pepperstone research strategist Dilin Wu stated: Such capital flows can quickly amplify price swings and trigger short-term short squeezes. On Friday, gold showed divergent performance, surging 1% intraday before turning lower. This caused the gold-silver ratio to fall below its May 2024 low, to about 72 times. (Gold-silver ratio falls to 72) Vantage Markets analyst Hebe Chen stated: Silver's outsized rally shows it is no longer a quiet sidekick to gold. The market is realizing structural scarcity and rapidly growing industrial demand, not just its safe-haven appeal. Supply and Demand Imbalance Supports Silver, Wall Street Optimistic About Next Year’s Price Silver’s rally has accelerated over the past two months, partly due to a historic squeeze in the London market. Although this tension has eased somewhat in recent weeks, as more metal is shipped to this world's largest silver trading center, other markets are currently facing supply shortages. Global silver demand has exceeded mine production for five consecutive years. Silver prices have doubled so far this year, outpacing gold’s 60% rise. As mentioned by Wallstreetcn, some market participants are concerned about a repeat of the crash scenarios in 1980 and 2011, when silver quickly gave back all gains after breaking $48. However, Sprott Money analyst Craig Hemke believes that today’s economic, monetary, and physical supply environment is completely different from history. Hemke thinks silver’s current price pattern more closely resembles gold’s breakout process in 2023-2024. Hemke expects silver’s true breakout to occur in early 2026, and said: Just like gold two years ago, silver is consolidating and bottoming near historic highs. If a breakout occurs next year, with gains similar to gold’s doubling since March 2024, silver could reach $100 per ounce by mid to late 2027. This week, Citi analysts also noted in their report that, based on Fed rate cuts, strong investment demand, and physical shortages, silver prices could rise to $62 per ounce within the next three months. Risk Warning and Disclaimer The market carries risks; investment requires caution. This article does not constitute personal investment advice and does not take into account the individual investment objectives, financial situation, or needs of specific users. Users should consider whether any opinions, views, or conclusions provided herein are appropriate for their particular circumstances. Investments made accordingly are at one's own risk.