Silver hit an almost 12-year high of US$33.89 ($50.50) an ounce this morning, as growing tensions in the Middle East further pushed investors towards safe-haven assets.
The precious metal broke its US$33 barrier on Friday, the same day Hamas announced the death of its leader, Yahya Sinwar, which sparked fears of further conflict escalations in the region.
“The martyrdom of our brother, the leader Yahya Sinwar . . . will only increase the strength and resolve of Hamas and our resistance,” Hamas said in a statement.
Lebanese armed group Hezbollah also pledged its support.
However, Israeli Prime Minister Benjamin Netanyahu warned that the war “is not over yet”, while US President Joe Biden said “Sinwar was an insurmountable obstacle” to achieving peace.
“That obstacle no longer exists. But much work remains before us,” Biden added.
In addition to the Middle East tension, prevailing uncertainty around the upcoming US presidential election has left investors scratching their heads about where to put their money.
According to the latest polling by Reuters and market research firm Ipsos, Democratic Vice President Kamala Harris holds a 3% lead over Republican candidate Donald Trump — 45% to 42% — as the two stay locked in a tight race for the 5 November election.
While Harris appears to be the preferred pick on matters of healthcare, political extremism, and threats to democracy, Trump leads as the favoured candidate for the economy and unemployment, the Reuters/Ipsos poll found.
A separate survey by the Wall Street Journal showed Harris and Trump more or less tied across the seven battleground states of Arizona, Georgia, Nevada, Pennsylvania, North Carolina, and Wisconsin.
The spike in the price of silver last week also coincided with the release of economic data from China, which showed third-quarter GDP growth of 4.6% year-on-year, marginally beating the 4.5% figure analysts had been expecting.
Last month, Chinese officials unveiled a slew of support measures aimed at jumpstarting its sluggish economy including slashing the amount of cash banks are required to have on hand by 50 basis points.
“Despite the multitude of challenges, China’s economy is not incurable as some would suggest,” Tianchen Xu, a senior economist at The Economist Intelligence Unit, said.
“There’s reason to be more optimistic about growth in the coming years, given how the government is committed to shoring up the economy.”
Another factor not to be overlooked is silver’s close relationship with gold, which has had a history-making rise this year to US$2,723 ($4,056), representing a 37.5% climb over the last 12 months.
In any case, interest in silver is gathering pace. According to an analysis by InvestingHaven, silver is likely to test its all-time highs next year, before setting new ones in 2026 and 2028. Price-wise, silver is expected to hit US$50 in 2025, US$75 in 2028, and US$80 in 2030.
Over the last 12 months, silver has gained just over 44%, and more than 89% over the last five years.
Write to Oliver Gray at Mining.com.au
Images: Unsplash
