The iShares Silver Trust (SLV) surged 5.00% during intraday trading on Friday, reflecting a sharp rally in the underlying silver prices.
The surge in SLV tracks a historic rally in silver, with the precious metal breaking through the critical $100 per ounce mark for the first time. This rally is driven by a combination of soaring safe-haven demand amid geopolitical tensions and monetary policy uncertainty, alongside persistent supply shortages in the physical market.
Investors are flocking to silver as a hedge against global turmoil, including friction between the U.S. and NATO over Greenland, deteriorating U.S.-European relations, and ongoing uncertainty over trade tariffs. Additionally, concerns about the Federal Reserve's independence and expectations for interest rate cuts have reduced confidence in traditional assets, boosting demand for precious metals. The market has also seen frenzied retail buying from Shanghai to New York, exacerbating the supply-demand imbalance that has persisted for five consecutive years.