Silver Hits Record High, Experts Warn of Sharp Correction

Silver prices have surged to record highs, delivering strong returns for Korean investors. However, market experts warn that the recent rally could face a sharp correction if U.S. tariff risks that have fueled silver inventory shortages are resolved.

Silver futures (March contract) on the New York Commodity Exchange (COMEX) closed at approximately $62.10 per ounce on Monday (local time). During the trading session, prices briefly spiked to $65.085.

Silver prices set a new record high of $56.5 per ounce on Feb. 28, and have continued their rally this month by breaking through the $60 level. The surge reflects both safe-haven demand amid concerns over currency depreciation and expanding industrial demand from semiconductors, electric vehicles, and solar panels. Analysts note that growth in advanced industries related to artificial intelligence is particularly driving silver demand.

Inventory shortages have intensified upward price pressure. The Shanghai Futures Exchange (SHFE), located in China—a major producer and consumer of silver—has seen continued declines in silver inventory. The possibility of U.S. tariffs has further exacerbated global inventory imbalances.

This global supply-demand uncertainty has been directly reflected in returns on Korean investment products. Eight of the top 10 performing ETNs from last month through the previous trading day were silver-related products. Mirae Asset Leveraged Silver Futures ETN B recorded the highest return among all ETNs, rising 62.56% during that period. Leveraged products that track silver prices at 2x rose approximately 60%, while 1x tracking products gained around 30%.

However, experts caution that the recent silver rally has reached levels difficult to explain by fundamental supply-demand improvements alone, warning of a potential short-term bubble. The U.S. designation of silver as a "critical mineral" and suggestions of possible tariffs similar to those on aluminum, copper, and steel have been identified as key factors behind the sharp price surge by deepening inventory imbalances.

Analysis suggests that the concentration of physical silver flowing into the U.S. has reduced available inventory in global markets, and investment demand centered on ETFs and futures has amplified volatility in the silver market, which is smaller than gold in terms of physical market size.

Market observers believe the current surge could quickly shift to a correction phase if global inventory flows distorted by tariff factors normalize. This has left individual investors increasingly uncertain about whether to sell their silver holdings that have risen sharply.