Silver Rises to Highest Since 2011 as US Premiums Grow

Silver jumped to its highest level since 2011, as US premiums rise and the spot London market shows signs of tightness.

Spot silver rose as much as 4% to $38.47 an ounce, the most since September 2011. US silver futures climbed even higher, with September contracts hitting $39.12 an ounce. Such a wide price gap is unusual, as it is typically eliminated quickly through arbitrage.

The precious metal last experienced a price dislocation between its two major markets at the beginning of the year, when the prospect of US tariffs on silver imports drove US futures prices higher. The arbitrage ...