Silver prices surged to a nearly 14-year high on Wednesday, reaching $39.40 per troy ounce. Up 36% this year, silver is outperforming gold and nearing the $40 mark. Worries about U.S. tariff policy and tightness in the spot market are driving investor interest in silver as an alternative to gold.

President Trump’s plan to impose import tariffs on copper and Mexico has widened the premium of U.S. futures for silver. Silver, gold, platinum, and palladium were excluded from Trump’s April tariffs, but the market is reacting as though they were included.

Analysts predict spot silver prices may hit $42 per ounce this year, driven by solid industrial demand and increasing investment interest. The ratio of silver to gold is at its strongest level in seven months, with 87 ounces of silver needed to buy an ounce of gold.

The recent rally in silver is attributed to fears around U.S. tariffs on copper, but lease rates in the spot market are expected to fall once the borrowing activity subsides. While the short-term outlook is bullish, some analysts caution that silver could fall back to $35 per ounce before reaching $45 per ounce next year.

Read more at Yahoo Finance: Silver’s hot streak gathers pace; market at highest since 2011