Mon Oct 13 11:10:00 UTC 2025: Here’s a news article summarizing and rewriting the provided Bloomberg text:

**Silver Soars to Decades-High as Historic Short Squeeze Grips London Market**

London – Silver prices surged to levels unseen in decades, fueled by an intensifying short squeeze in the London market that has triggered a global scramble for physical bullion. Spot silver hit a peak of nearly $52 per ounce, driven by a demand-supply mismatch and lack of liquidity in London. Gold also reached new highs, exceeding $4,070 an ounce, while platinum and palladium followed suit, indicating the stress is spreading across the precious metals complex.

The surge in London has created an unprecedented premium over New York prices, prompting traders to book transatlantic air cargo for silver bars, a costly measure more commonly reserved for gold shipments. Silver lease rates in London have skyrocketed, exceeding 30% annually, imposing significant costs on those seeking to roll over short positions.

Analysts at Goldman Sachs warn that the silver market, being significantly smaller and less liquid than gold, is vulnerable to disproportionate price corrections if investment flows reverse, especially given the tight conditions in London.

The rally in precious metals is also supported by central bank buying, rising ETF holdings, and anticipated Federal Reserve rate cuts. Concerns about US-China trade tensions, threats to the Fed’s independence, and government shutdowns have further bolstered demand for safe-haven assets. Although both sides have expressed openness to talks, analysts warn the risk of further trade volatility remains.

Traders are also closely watching the US administration’s Section 232 probe into critical minerals, including silver, platinum, and palladium, fearing potential tariffs that could further strain supply and exacerbate market tightness.

As of 10:16 a.m. in London, spot silver traded near $52 an ounce, with gold close to a fresh record of $4,079.89. Platinum and palladium also registered gains exceeding 3%.

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