Why did the price of silver suddenly explode? Silver shortage, inventory urgent.

During the Asian trading session on December 1st, the spot silver price in London hit a new historical high, surpassing $57 per ounce for the first time. International silver prices have surged over 90% so far this year. As of 10 a.m. Beijing time, the spot silver price in London was reported at $57.7 per ounce, up about 2.3%. Analysis points out that the recent market expectations of a rate cut by the Federal Reserve have provided solid support for silver and the entire precious metals market. On the physical supply and demand side, in recent years, a decrease in silver production has led to a persistent supply shortage. Global exchange silver inventories have fallen to their lowest level in nearly a decade, while demand in industrial sectors such as photovoltaics and electric vehicles continues to grow, further exacerbating tightness in the spot market. In the leasing market, short-term silver rental rates have soared, highlighting the shortage of silver supply in the market. Some analysts believe that the current ratio of gold to silver prices is around 75:1, significantly higher than the average ratio of about 60:1 over the past twenty years, indicating that silver is relatively undervalued in the precious metals sector. Bank of America recently raised its target price for silver in 2026 to $65 per ounce.