Silver price surges above $40 for first time in 14 years; miners rally

[Silver bars or ingots background. Precious metal.]
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U.S. silver futures popped above $40/oz, surging alongside gold's rise to new record highs [https://seekingalpha.com/news/4490934-gold-hits-record-high-above-3500-us-dollar-dips-on-rate-outlook], aided by mounting expectations that the Federal Reserve is poised to resume interest rate cuts and risks over Fed independence, with a helping hand from industrial demand given the metal's use in solar panels.

The front-month Nymex September silver contract (XAGUSD:CUR [https://seekingalpha.com/symbol/XAGUSD:CUR]) +2.2% to $41.10/oz, the highest since September 2011 and on top of a 10% increase in August for an eighth straight monthly increase.

"Gold, and especially silver, extended Friday's strong gains, supported by sticky U.S. inflation, weakening consumer sentiment, [expected] rate cuts... and concerns over Fed independence," Saxo Bank head of commodity strategy Ole Hansen said Monday.

Precious metal prices also were boosted by a court ruling [https://seekingalpha.com/news/4490613-federal-appeals-court-strikes-down-most-of-trumps-tariffs] against President Trump's "reciprocal" tariffs that threw their future into doubt.

Stocks of silver mining companies trade at multi-year highs, including Endeavour Silver (EXK [https://seekingalpha.com/symbol/EXK]) +4.5%, First Majestic Silver (AG [https://seekingalpha.com/symbol/AG]) +4.4%, Hecla Mining (HL [https://seekingalpha.com/symbol/HL]) +3.3%, Coeur Mining (CDE [https://seekingalpha.com/symbol/CDE]) +2.6%, Buenaventura (BVN [https://seekingalpha.com/symbol/BVN]) +2.6%, Pan American Silver (PAAS [https://seekingalpha.com/symbol/PAAS]) +1.8%, Fortuna Mining (FSM [https://seekingalpha.com/symbol/FSM]) +0.8%.

Silver-backed ETFs expanded for a seventh straight month in August, the longest run of inflows since 2020: (NYSEARCA:SLV [https://seekingalpha.com/symbol/SLV]), (NYSEARCA:PSLV [https://seekingalpha.com/symbol/PSLV]), (SIVR [https://seekingalpha.com/symbol/SIVR]), (NYSEARCA:SIL [https://seekingalpha.com/symbol/SIL]), (SILJ [https://seekingalpha.com/symbol/SILJ])

Global silver investment remains concentrated in just four countries - the U.S., India, Germany and Australia - which combined account for ~80% [https://www.miningweekly.com/article/silver-institute-highlights-us-india-as-key-drivers-of-investment-demand-as-prices-top-40oz-2025-09-02] of bar and coin demand, according to a new report published by the Silver Institute.

According to the report, the U.S. remains the biggest silver investment market, with retail investors acquiring 1.5B oz during 2010-24, with much of the silver remaining in investor hands, although selling has picked up since late 2023.

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