Silver Surges as Treasury Intervention Meets Structural Supply Deficit

The price of silver has surged in recent weeks, driven by a combination of factors. The US Treasury Department's decision to double its buyback of long-dated government bonds sent shockwaves through markets, with investors interpreting it as a signal of creeping dollar devaluation.

This move was seen as a catalyst for the rally, which saw silver prices climb 1.3% on Friday to close at $69.01 per ounce. The metal has now gained 6.5% over the past week and roughly 15% across the last month.

However, the Treasury's intervention has done little to calm the market, with yields on ten-year US Treasuries climbing to 4.737% and the 30-year note pushing to 5.276% - its highest level since 2007.

The market has been responding to these developments, with silver showing a structural deficit in supply dating back to 2021. The Silver Institute estimates that the shortfall reached an estimated 95 million ounces in 2025 and is projected to be around 67 million ounces this year.