Silver Hits All-Time High as London Squeeze Boosts Market Rally

Silver prices touched an all-time high above $52.50 an ounce, as a historic short squeeze in London added momentum to a rally fueled by surging demand for safe-haven assets, Sybilla Gross reported for Bloomberg News.

Some traders have reportedly booked cargo slots on transatlantic flights for silver bars.

Spot prices rose as much as 0.4% to $52.5868 an ounce in London, surpassing a peak set in January 1980 on a now-defunct contract overseen by the Chicago Board of Trade — when the billionaire Hunt brothers attempted to corner the market.

Gold also climbed to another record high, extending an eight-week winning streak.

Concerns about a lack of liquidity in London have triggered a global scramble for silver, with benchmark prices soaring to near-unprecedented premiums over New York.

Some traders have reportedly booked cargo slots on transatlantic flights for silver bars — an expensive mode of transport typically reserved for gold — to capitalize on higher prices in London.

The premium stood at about $1.55 an ounce in early trading on Tuesday, down from a $3 spread last week.

Silver lease rates — which represent the annualized cost of borrowing metal in the London market — have remained elevated this year and surged to more than 30% on a one-month basis on Friday.