Silver printed a fresh record near $62 an ounce on Monday, closing at $61.46 for a 2.5 percent gain, while gold closed steady at $4,171. The divergence between the two metals is the story: silver’s industrial bid from solar and AI hardware is compounding its haven bid, while gold is capped by real yields and a firm dollar.
Bloomberg reported October 5 that dollar strength on European debt risks offset haven bidding in gold, and that gold reversed earlier losses as inflation fears eased with oil slipping. The 10-year Treasury yielded 5.31 percent and the dollar index stood at 102.25, a combination that would normally pressure both metals. Silver’s ability to print records into that backdrop marks it as a growth trade as much as a fear trade.
Deutsche Bank’s Daniel Ghali argues the dynamic may be peaking: he says peak silver scarcity is over and a surplus could emerge in 2027, with London commercial vaults holding 914 million ounces at end-August and solar silver use set to fall more than 20 percent this year. He still projects spot averaging $70 an ounce by the second quarter of 2027. The call is nuanced, not a simple bearish turn.