The price of silver reaches a record level amidst a stampede in the London market

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Silver prices reached a record high on Tuesday, as a stampede for the precious metal in London injected new momentum into a rally that had already outpaced gold’s rally.

Silver touched $53 an ounce during the day in early trading, bringing its gains for the year to more than 80 percent.

The surge has been driven by investor appetite, who see the white metal as an alternative to gold, and demand from industries ranging from electronics to solar panels. In recent weeks, Indian buyers preparing for the wedding season have also flocked to the silver market.

As the level of available silver inventories in London approaches historic lows, a premium of between $1 and $2 has developed for silver in London, compared to the price of the metal in Comex futures contracts in New York.

“The unprecedented tightness in silver… has left the axis of the physical market in London broken,” noted Nicky Shiels, an analyst at MKS Pump.

As a result, some traders took the highly unusual step of transporting the silver across the Atlantic Ocean from New York to London in the cargo hold of aircraft – usually only gold moved this way, while larger silver usually moved by ship.