Gold nearly PLN 500 per gram, silver breaks the 1980 record

This morning, silver and gold reached new price records. Silver has broken its all-time high from 45 years ago. The price has surpassed $53 an ounce, meaning the record high of $52,5 set in 1980 has finally been broken.Gold also climbed to new levels – at its peak, it cost $4190,90 per ounce, equivalent to nearly PLN 497 per gram, approaching the symbolic PLN 500 mark. After reaching record highs, prices for both metals have retreated slightly, but remain significantly above previous days' levels.

Liquidity deficit in the silver market

Increase in prices silver A unique combination of factors is driving this. The London market witnessed a historic short squeeze as bearish investors were forced to rapidly buy the metal, which, given the shrinking liquidity, only accelerated the rally. At the same time, physical demand remains strong, particularly from India, which has increased its silver imports in recent weeks. The earlier import of large quantities of metal from Asia to New York, due to fear of possible US tariffs, further limited the availability of raw material in LondonAs a result, high premiums for physical delivery of the metal have emerged, and the price differential between London and New York has reached its highest level in years. Some companies have even begun airlifting bars across the Atlantic, a practice typically reserved for gold. This situation reflects the growing tension and liquidity deficit in the silver market.

The US administration's Section 232 investigation into silver, platinum, and palladium imports is also adding to the uncertainty. It aims to determine whether supplies of these metals are critical to national security. The mere prospect of potential trade restrictions is causing companies to curtail exports and investors to stockpile.

Global uncertainty drives gold

Gold is also breaking another price record today. Early morning prices reached $4190,90 per ounce, and the precious metal is gaining for the eighth week in a row. The increase is supported by central bank purchases. National Bank of Poland today has over 520 tonnes of gold, which is more than the European Central Bank, and over the past decade, Polish gold reserves have increased fivefold.

Strong flows into ETFs, Fed interest rate cuts and rising demand for safe-haven assets amid geopolitical tensions are also keeping prices high. Recent weeks have seen a renewed tension in US-China relations, after Beijing announced it would expand export controls on rare earth metals and President Donald Trump threatened 100% tariffs on Chinese goods.After the weekend, both sides are trying to moderate sentiment, and investors are eagerly awaiting the planned Trump-Xi meeting in South Korea at the end of October. For the gold market, however, this means continued jitters and continued demand for safe-haven assets.

As a result, both goldand silver remain the beneficiaries of global uncertainty—economic, political, and financial. And while records always come with a temporary respite, precious metals continue to remind investors that in a world fraught with risk, they hold exceptional, enduring value.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.