Silver prices surged to their highest levels since 2011, with spot silver hitting $38.47 an ounce and US futures reaching $39.12. The market is showing signs of tightness, with borrowing costs in London jumping to 4.5%. Silver holdings in ETFs are up by 1.1 million ounces, leaving inventories critically low.

The rush to move silver has caused a price dislocation between major markets, leading to a shortage of freely available silver. Silver’s dual role as a financial asset and industrial input, particularly in clean-energy technologies like solar panels, has driven its 33% increase this year. The market is projected to face a fifth consecutive year in deficit.

Spot silver was up 3.9% at $38.46, while gold rose to $3,357.79. Platinum and palladium also saw significant gains. Silver’s recent performance has outpaced gold, driven by increasing demand for clean-energy technologies. Daniel Ghali of TD Securities predicts a physical squeeze in the silver market due to critically low inventories.

Read more at Yahoo Finance: Silver Rises to Highest Since 2011 as US Premiums Grow