The iShares Silver Trust (SLV) surged 5.05% in pre-market trading, continuing its recent bullish momentum. This rally reflects a combination of factors driving silver prices higher, including a retail-driven "Silver Squeeze 2.0," booming industrial demand, and macroeconomic tailwinds.
Retail investors have been aggressively buying physical silver, draining inventories and pushing premiums higher. Industrial demand from AI and solar sectors has also surged, as silver's conductivity makes it indispensable for these technologies. Additionally, weaker-than-expected US inflation data has reinforced expectations of rate cuts, further supporting precious metals.
Geopolitical tensions, including unrest in Venezuela, Greenland, and Iran, have boosted safe-haven demand for silver. Meanwhile, structural supply deficits and potential US tariffs on silver imports have exacerbated supply concerns, creating a perfect storm for SLV's outperformance.
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