The price of silver hit a new and historic high during trading on Monday, with the price per ounce exceeding $113 for the first time in the history of global trading, indicating radical shifts in precious metals markets, according to the latest trading data
Official data revealed a sharp rise in the price of silver futures contracts for March delivery on the COMEX exchange in New York, where prices jumped by a significant percentage of (12.02%), reaching a level of (113.502) dollars per ounce, a level never before seen in the markets
The economic context and the importance of white metal
This record high comes at a time when investors worldwide are turning to precious metals as safe havens. Historically, silver has played a dual role in the global economy: on the one hand, it serves as a store of value, hedging against inflation and currency fluctuations, and on the other hand, it is an indispensable industrial component. Major price surges in metals are typically linked to market fears of economic recession or the weakening of major currencies like the US dollar, prompting capital to migrate towards tangible assets.
Widespread industrial impacts
The impact of this historic price ($113 per ounce) extends far beyond the trading screens, reaching the global industrial sector. Silver is a vital component in numerous modern industries, most notably solar panels, batteries, semiconductors, and 5G technology. Reaching such record-breaking levels could lead to increased production costs in these critical sectors, which may subsequently be reflected in the prices of finished consumer products and pose a challenge to clean energy projects that rely heavily on this metal.
Future outlook for markets
Economic analysts believe that breaking the $100 barrier and reaching $113 places silver in an entirely new price range, potentially altering the strategies of major investment portfolios. This surge is reshaping the price relationship between gold and silver and could drive further liquidity into commodity markets. Global markets are now watching to see if this rise will stabilize at these levels or mark the beginning of a larger upward trend fueled by increased industrial demand and a global supply shortage.
