Silver and Copper Hit Record Highs After CME Outage Sparks Wild Market Rally
Silver and Copper Hit Record: Metals prices exploded in highly volatile trading on Friday, with silver and copper rocketing to new all-time highs after a chaotic, hours-long outage disrupted CME Group’s Chicago Mercantile Exchange.
Silver surged as much as 5.9% to $56.53 an ounce, breaking the record set during last month’s dramatic London market squeeze. The metal has been buoyed by expectations of a Federal Reserve rate cut in December, increased inflows into silver-backed ETFs, and persistent global supply tightness.
Copper also shot higher, driven by deepening supply shortages and increasingly bullish forecasts from global traders and mining executives.
The record-setting rally unfolded during thin Black Friday trading volumes, magnifying price swings following the CME disruption. Bid-ask spreads in gold briefly widened, signaling severely illiquid conditions. As CME operations gradually resumed, metals futures on the London Metal Exchange extended the surge.
Silver’s new peak comes just weeks after London’s dominant trading hub faced a severe shortage, lifting prices far above those in Shanghai and New York. Despite the arrival of 54 million troy ounces to ease the crunch, the market remains extremely tight, with borrowing costs still elevated.
Pressure is now shifting to other global hubs, especially China. Shanghai Futures Exchange silver inventories have hit their lowest level since 2015, intensifying concerns. Analysts at Commerzbank warned that further price spikes remain likely if Chinese inventories continue to fall.
Traders are also bracing for potential US import tariffs after silver was added to the US Geological Survey’s critical minerals list. Since early October, 75 million ounces have exited Comex vaults, though fears of a sudden premium for US silver are slowing further withdrawals.
Silver has now soared over 90% this year, fueled by a global retreat from bonds and fiat currencies—often referred to as the “debasement trade.” Its strong industrial demand, especially from solar manufacturing and electronics, has reinforced the rally as the market heads toward a fifth consecutive supply deficit.
Copper’s surge gained additional momentum following high-level meetings in Shanghai this week. Industry leaders warned of accelerating tightness, with heavy shipments heading to the US to capture a substantial premium on Comex, risking a shortage in the rest of the world.
“This is the big one,” said Mercuria’s metals chief Kostas Bintas, predicting global inventories could run dangerously low. Analysts say Friday’s jump reflects extremely bullish sentiment heading into year-end, driven by supply disruptions, expectations of Fed easing, and looming US tariff uncertainty.
Copper futures climbed 2.3% in London, touching a new record at $11,210.50 per ton, reinforcing the mounting fears of a global shortage.
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