Silver has really surged recently! As of the time of writing, the COMEX silver futures main contract has broken through $60/ounce for the first time, reaching a high of around $62; the Shanghai silver main contract has also broken through the fluctuation range, firmly standing above 14,000.

This wave of silver price surge, in addition to macro factors, has several key drivers to keep an eye on:

1. Macroeconomic expectations are sky-high: CME's "Fed Watch" shows that the probability of a 25 basis point rate cut in December is as high as 87.6%. Although there are internal disagreements within the Federal Reserve, the market's expectations for rate cuts are extremely strong, with a key focus on tomorrow's interest rate decision results. Additionally, popular Fed chairman candidate Hasset has stated that there is ample room for rate cuts, aligning with the President's stance, making the market more confident that further easing will follow.

2. Supply side continues to tighten: Major producing countries like Mexico and Peru have seen declines in production this year, and silver recycling has not kept up, resulting in a significant global supply gap. Silver inventories at major exchanges have dropped to low levels, with particularly fast inventory consumption rates.

3. Demand side is pushing from both ends: In industry, the amount of silver used in photovoltaics has skyrocketed, and demand from new energy vehicles and AI computing servers has also increased significantly; on the investment side, it is even more intense, with total investment demand for silver bars, silver coins, and ETFs expected to reach 1.334 billion ounces by 2025, an increase of 8.2% year-on-year, setting a historical high and accounting for 37% of total demand.

4. Market sentiment is completely ignited: After the COMEX silver broke through the resistance level of $54, the price focus has been lifted all the way, and everyone is optimistic about the subsequent upside potential.

However, in the short term, risks should be noted: After the silver price reaches a historical high, it is necessary to guard against profit-taking selling, and if there is a deviation from expectations after the interest rate decision, it may also trigger volatility.