Silver Price Hits $78.65 as Precious Metals Surge to Record Highs Amid Rate Cut Hopes

 Silver Prices Reach Historic High as Precious Metals Rally

The price of silver climbed above $78 an ounce for the first time on Friday, marking a historic milestone in its record-breaking run. According to the New York Commodity Exchange, silver stood at $78.65, fueled by interest rate cut expectations, tariff uncertainty, and growing demand in AI technology.

Silver’s gains have outpaced gold, which rose just over 1.2% to a high of $4,562.70 on Friday. Over the past year, silver has surged more than 146%, putting it on track for its largest annual gain since 1979. Other metals also saw significant jumps, with platinum rising nearly 9% to $2,503 and copper climbing over 5% to $5.82.

What’s Driving Silver’s Surge?
Analysts cite several factors behind silver’s dramatic rise this year:

• Prospects of federal interest rate cuts that boost demand for precious metals.

• Increased industrial demand, particularly for AI data centers.

• Constrained silver supply amid rising global consumption.

• Tariff uncertainties impacting global trade and investor sentiment.

“Prospect of lower U.S. interest rates is still supporting demand for gold and silver, lifting both metals to new record highs,” said UBS analyst Giovanni Staunovo. Retail investors, including communities on Reddit, have also flocked to silver, hoping to ride the historic surge.

Is Silver a Safe Investment?
Despite its meteoric rise, some analysts caution that gold remains a safer bet. Gold is scarcer, more valuable per ounce, and easier to transport and secure, making it a more practical investment for financial institutions. Silver, on the other hand, often rises and falls in cycles, sometimes dramatically.

“Silver tends to be a product that goes parabolic, then collapses,” said Brent Donnelly, president of Spectra Markets. However, some strategists remain optimistic about silver continuing to perform well into the new year. Peter Reagan of Birch Gold Group notes that rising economic uncertainty and inflation pressures could support higher silver prices and stronger demand.

As investors weigh risks and rewards, precious metals continue to shine, with silver, gold, and platinum setting the stage for what could be another historic year.