Silver continues to break records: what’s happening on the stock exchanges
17 December 11:26
Global silver prices set a new all-time high. Futures contracts for the precious metal on the Comex exchange exceeded $66 per troy ounce for the first time in history. This is evidenced by the data of the Comex platform, "Komersant Ukrainian" reports
As of 08:30, the silver futures rose to $66,360 per ounce, and later rose even higher to $66,385, finally setting a new record.
What’s happening to silver prices
The record growth is taking place amidst a sharp increase in investor interest in precious metals, in particular as a hedge against
- geopolitical instability
- weakening confidence in fiat currencies;
- high inflation and debt risks;
- growing demand from the industry, primarily the green energy sector.
Prior to that, silver had already updated its historical highs several times in December:
- december 9 – $60.025 per ounce;
- december 12 – $65,028 per ounce.
The current surge means that the price of the metal has risen by more than 10% in less than a week.
Why silver is rising faster than gold
Analysts point out that silver is now outpacing gold in terms of growth due to the dual nature of demand:
- Investment factor
Silver is viewed as an alternative to gold – a cheaper but more volatile protective asset.
Industrial factor
The metal is widely used in:
- production of solar panels
- electric vehicles
- batteries;
- microelectronics.
Limited supply amid growing demand creates a structural deficit of silver in the global market.
What is Comex?
Comex is one of the world’s key platforms for trading precious metals futures. Comex quotes are considered the benchmark for the global silver market.
COMEX was formerly known as Commodity Exchange Inc. and is now merged with NYMEX and is engaged in metals trading. COMEX mainly serves as the main clearing house for gold.
The New York Mercantile Exchange is owned by CME Group, the world’s largest commodity exchange operator. According to CME, on average, more than 400,000 futures and options contracts are executed on the COMEX per day.
The renewal of the historical maximum on this platform means that:
- the market is pricing in further price growth;
- institutional investors are actively increasing their positions;
- silver is entering a price breakout phase (price discovery).
