The price of silver has increased by more than one percent, exceeding 1,44,000 and reaching $46.5 per ounce, which is the highest the price has been in fourteen years. The demand for safe-haven assets among investors has increased as a result of the rise in anxieties over the possibility of the United States government shutting down, as well as the depreciation of the dollar. These factors have been the primary driving forces behind the rally.

The metal’s upward trend is being fueled even more by strong demand and chronic supply shortages. Demand is anticipated to surpass supply by more over one hundred million ounces in 2025, according to the Silver Institute, which predicts that this would result in a fifth consecutive annual deficit. The bullish momentum that is present in silver markets around the world has been considerably reinforced by this imbalance, which is still persisting.

In the meantime, more and more traders are taking positions based on their assumptions regarding monetary policy. At the present moment, over 90% of market participants believe that the Federal Reserve will reduce interest rates in the coming month. They are wagering that precious metals will be supported by this easing of monetary policy. This past Friday, a study was published that revealed that inflation was not increasing or decreasing. This finding reinforces the anticipation that monetary easing will be implemented in the upcoming months.

Silver has reached its highest price point in more than 10 years, and investors are considering both macroeconomic threats and supply limits. This dramatic increase in the metal’s price emphasizes its dual role as a benefactor of tightening fundamentals and as a hedge against uncertainty.