Silver Soars to Record $53 as London Squeeze Echoes 1980 Hunt Brothers Mania
Silver surged to a record high above $53 an ounce on Tuesday as a powerful short squeeze sent traders scrambling for physical supply in London, reviving memories of the Hunt brothers’ 1980 cornering of the market.
The rally has forced investors who bet on falling prices to buy back metal to limit losses, driving prices even higher. The London Bullion Market Association (LBMA) said it was “aware of tightness in the silver market and is actively monitoring the situation.”
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A severe supply shortage in the UK has led some traders to rent silver at interest rates approaching 35%, while others have begun flying metal from New York to London to cover positions. Goldman Sachs data show borrowing costs have soared from around 5% earlier this month.
Silver has now risen more than 75% so far in 2025, far outpacing gold’s 55% climb, as investors flock to safe-haven assets amid US-China trade tensions, fears of a stock market bubble, and expectations of US interest rate cuts.
Ole Hansen of Saxo Bank said: “A liquidity squeeze, which we expect to be temporary, amplified the recent silver rally.” London’s inventories have fallen to 22,000 tonnes, down from more than 35,000 in 2022.
The chaos echoes the Hunt brothers’ attempt to corner the market in the late 1970s, when speculative buying pushed silver to $50 before collapsing on “Silver Thursday” after trading limits were imposed.
Adrian Ash, of BullionVault, warned: “With the volatility of price action we’re seeing, we’ve got to expect some kind of correction sooner rather than later. We’re advising clients to tread carefully.”
