Silver breaks £49 an ounce as US debt fears fuel safe-haven rush

Silver climbed past £49 per ounce on Friday, the strongest level in several weeks, as investors repositioned towards safe-haven assets on mounting concerns about US government debt. The white metal is now tracking at approximately $69-70 per ounce, or around £48-49 in sterling, driven by the same forces lifting gold to its highest level since mid-May.

The catalyst is a shift in how markets view US fiscal policy. The Treasury Department unexpectedly increased its planned purchases of longer-dated government debt this week, a move that raised questions about Washington's ability to manage rising borrowing costs without triggering a fresh round of inflation. Bond yields have retreated sharply in response, and the US dollar has weakened accordingly. Lower Treasury yields make precious metals more attractive relative to bonds and cash, because gold and silver generate no income but serve as stores of value when financial assets falter.

Gold benefited most immediately, climbing to over $4,600 per troy ounce on Friday, or approximately £3,240 in sterling terms, marking its best level since mid-May. Silver's move was proportionally larger, with the white metal gaining roughly 3 per cent on the week. The dual rally reflects investor appetite for assets seen as uncorrelated to government policies and currency debasement risks.

For UK buyers, the climb to £49 per ounce for silver is notable given the VAT burden. Investment silver carries 20 per cent VAT, so the all-in cost including dealer premium, tax, and delivery can exceed £59 per ounce. By contrast, investment-grade gold remains VAT-exempt. Bonded storage in an LBMA vault eliminates VAT for those avoiding physical possession. This is not financial advice.