Silver Prices Surge to 77% Gain Amid Investment Demand Frenzy

Silver prices have surged 77% in the past year, but some analysts are warning of increasing risks as demand for industrial use declines.

The spot price of silver has reached $68.69 an ounce, down 0.4% on Monday after a three-day climb. However, the metal remains up around 18% over the past month and nearly 77% year-over-year.

Rising investment demand is contributing to the surge in silver prices, but this has also increased volatility as investors reassess their portfolios. The supply outlook continues to be constrained, with Metals Focus projecting a deficit of 46.3 million ounces for this year.

The divergence between silver and gold prices is also noteworthy, with gold rising 0.8% to $4,639.49 on Monday while silver retreated. Analysts are warning that hotter inflation and climbing yields could halt any gains in silver prices.