Silver Breaks $46, Supply Tightens & Investors Rush Market
Silver prices continue to climb and are now trading at $46,521 per troy ounce in the Asian session this morning, Friday (September 29, 2025). This extends the precious metal's rally after breaking through the psychological $45 mark last week for the first time in 14 years. This surge is not without reason—investor demand is soaring, while physical supply is tightening.
Recent data shows global investors are still buying silver through ETFs, causing bullion stocks in London to shrink drastically. This situation is making the market even more congested, especially since lease rates, or short-term silver borrowing costs, have now soared above 5%. Normally, this figure is nearly 0%. This means the physical market is truly dry.
This market condition occurs amid expectations of interest rate easing by the US central bank. If US economic data weakens, particularly the potential employment data, which is delayed due to the threat of a shutdown, the Fed could take a dovish stance. This makes silver (and gold) even more attractive as real yields decline.
Fundamentally, silver is also receiving support from the industrial sector. Demand for solar panels, semiconductors, and electric vehicles is increasing, while mining production is not increasing significantly. This combination of investment and industrial demand is the main fuel for silver's recent rally. (ads)
Source: Newsmaker.id
