Silver prices jumped for the fourth straight day, driven by ETF inflows, momentum tracking and tight supply in the physical market, pushing the white metal to its best annual performance since 1979. The precious metal rose to a new record high, topping $64 an ounce on Friday morning, amid sharp price swings. Silver has rallied around 10% this week, supported by muted signals from the Federal Reserve, which implemented an expected rate cut and signaled signs of weakness in the US labor market. Low interest rates are a supportive factor for non-booming precious metals such as silver. Most analysts said the size of the rise was difficult to pin down to a single driver, as silver price rises can sometimes fuel further upside, with individual investors and momentum traders drawn to this metal known for its extreme volatility. Also Read: Silver Surpasses $64, Gold Rises Amid Bet on Rate Cut in 2026 London Silver Market Chokes This week’s rise comes just two months after the London silver market entered a state of complete suffocation, with already low stocks eroding to critical levels, due to index fund flows and exports to India. London’s vaults have since received significant inflows, but much of the silver available globally remains in New York, at a time when traders await the results of the Section 232 investigation in the United States, which could lead to the imposition of tariffs or trade restrictions on the metal. “Until the picture becomes clearer, silver continues to hit a speculative high that is increasingly risky,” TD Securities’ Daniel Ghaly wrote in a note Thursday. He added: “We expect no fees to be levied on silver, which would revive liquidity dynamics in favor of a sharp drop in prices.” The gold-to-silver ratio, which traders sometimes use to gauge how relatively cheap the white metal is, fell to its lowest level since 2021 on Thursday, at about 67 to 1. Silver Futures One indicator of speculative fervor is the levels of buying call options, either on silver futures or on exchange-traded funds that track the metal’s volume. Call option contracts give the buyer the right to buy an asset at a predetermined price, and are a low-cost way to bet on rising prices. At iShares Silver Trust (SLV), the largest silver ETF, total open interest in call option contracts reached its highest level since 2020 this week. The cost of buying call options compared to the cost of buying similar put options, which protect against downside, also jumped to their highest level in years in recent weeks. “We’ve seen significant new bullish interest in options on both CME futures and the SLV fund,” said Edward Sternberg, head of metals options at Optiver Holding BV, noting that this appears to be driving silver prices more than short covering. “Given the popularity of the SLV fund among both individual and institutional investors, the purchase of put options likely came from both sides,” Sternberg added. He continued: “There was a sudden lack of interest in selling options despite the significant increase.” You may be interested in: Why has the price of silver risen more than the price of gold? Positive long-term outlook for silver prices Although the short-term price movement in silver has been “excessive”, the fundamental long-term outlook remains positive, according to Carsten Fritsch, commodity analyst at Commerzbank AG. Earlier this week, the Silver Institute released a report noting consumption growth in industrial applications, anticipating a sharp rise in demand for solar cells and electric vehicles. Higher prices for input materials tend to push manufacturers to seek efficiencies or substitutes. TD’s Ghaly believes that the sharp jump in silver has already hurt industrial demand, noting that the white metal now represents about a quarter of the cost structure of photovoltaic cells. Silver prices have risen 120% this year, outstripping gold’s 65% gain. ETF flows have played a key role in the recent gains, adding 35 million ounces of silver over the past month, according to Bloomberg calculations. The price of silver rose 1.1% to $64.23 an ounce at 1:56 p.m. London time. The price of gold rose by 1.4%. Platinum and palladium also posted gains. The Bloomberg Dollar Index rose slightly.