• Spot silver climbed more than 2% intraday to $77.43 per ounce, before paring gains on profit-taking.
  • The rally is fueled by expectations of easier US monetary policy, a softer dollar, geopolitical tensions, and strong industrial demand, alongside persistent supply deficits.
  • Higher silver prices are squeezing jewelers and manufacturers, prompting some to substitute materials, while miners benefit from elevated realized prices.

Spot silver surged past $77.43 an ounce in intraday trading, marking a fresh milestone in a multi-month rally that has pushed the metal to decade-plus highs. The move, driven by a confluence of safe-haven buying and robust industrial demand, saw prices later ease slightly as traders locked in profits, according to dealers.

“We’re seeing a classic precious metals bid right now – a weaker dollar, rate-cut expectations, and geopolitical risk are all feeding into silver,” one London-based trader said. The metal has outperformed gold this year, amplifying gains as investors seek cheaper exposure to the asset class.

Behind the rally: monetary policy expectations have shifted, with markets pricing in Federal Reserve rate cuts later this year, which tends to lift non-yielding assets like silver. A softer US dollar has added momentum. At the same time, structural supply concerns remain acute: industry surveys continue to show a physical deficit, and export restrictions from major producers like China have been flagged as ongoing risks.

Industrial demand – particularly from electronics, photovoltaics, and green-energy applications – has kept physical markets tight. “Silver’s role in solar panels and electric vehicles is only growing, and that’s providing a floor under prices despite bouts of volatility,” noted a commodities analyst.

The price surge is having real-world effects. Jewelry firms, for instance, are scrambling to adapt. Pandora (PNDORA.CO), the world’s largest jewelry maker by volume, has publicly shifted some product lines away from sterling silver to platinum plating and alloys. “At these levels, we have to be smart about input costs,” a company spokesperson said, though they declined to comment on current pricing. Calls to other major jewelers were not immediately returned.

For miners, the rally is a windfall, though rising energy and labor costs are eating into margins. Refiners are also benefiting, as processing spreads widen. On the consumer side, higher silver prices are trickling down to electronics and silverware, potentially damping demand in price-sensitive markets.

Looking ahead, volatility is expected to remain elevated. Market watchers are closely watching Fed commentary, dollar moves, and next week’s inventory data from COMEX and LBMA. If the deficit narrative persists and industrial demand stays strong, silver could hold these levels or push higher – though profit-taking and technical resistance could trigger sharp pullbacks.

This article was updated at 3:45 PM ET to reflect intraday price action. A previous version omitted the industrial demand driver; the correction has been integrated.