Source: Sharecast
The precious metal reached $53.60 per ounce in early trading, before easing back off highs. It has now gained more than 85% so far this year, mirroring a similar record-breaking rally in gold prices.
Bullion breached $4,000 for the first time last week, having surged more than 50% this year. It is now trading at over $4,100 an ounce.
Investors often see silver as a proxy for gold. But prices are also benefiting from strong industrial demand, with the metal used in a variety of sectors including electronics and solar panels.
Consumer demand, meanwhile, has been supported by the upcoming Indian wedding season, which starts in October.
Supply, however, remains severely constrained, and silver inventories in London are now approaching historic lows.
David Morrison, senior market analyst at Trade Nation, said: "Silver is living up to its reputation as gold’s unruly younger sibling. It hit $53.60 but then lost $3 in an hour or so. So, volatility is up, market spreads are widening and volumes are thinning. This may be a feature of the precious metals market as we get further towards year end.
"That’s not to say gold and silver can’t go higher. But if they do, it’s going to be a wilder ride from now on."
On Monday, Bank of America raised its 2026 forecasts for both metals, to $5,000 an ounce for gold and $65 an ounce for silver.
