On Friday, the price of an ounce of silver surpassed $75, marking a historic precedent amid an unprecedented surge in precious and industrial metals as the year comes to a close, driven by escalating economic and political tensions globally.
Silver was recorded at $75.1515 per ounce (31.1 grams), while gold reached a new record high of $4,531.04 per ounce, the highest price recorded to date.
Since the beginning of January, the price of gold has risen by nearly 70%, while silver has jumped over 150%, representing the best annual performance for both metals since 1979.
This significant rise is attributed to increasing tensions between the United States and Venezuela, especially after Washington deployed military forces in the Caribbean region and imposed a naval blockade on Caracas, accusing it of financing what it describes as “drug-related terrorism.”
In this context, the U.S. dollar has lost some of its appeal as a safe haven, and investor appetite for U.S. Treasury bonds has declined, opening the door for precious metals to compensate for this retreat.
The uncertainty surrounding President Donald Trump’s administration, along with the potential for interest rate cuts by the Federal Reserve, has further strengthened this trend, as any decline in rates makes the dollar less attractive.
Moreover, investors are growing increasingly concerned about the rising public debt in major global economies, as well as what some describe as an “artificial intelligence bubble,” pushing more capital toward hedging through metals.
All these factors combined are driving the prices of gold and silver to historic levels, as markets seek more stable assets in the face of what seems to be long-term disturbances.
