Spot silver jumped more than 5 percent to above $40 an ounce on Monday after gold hit record on safe-haven buying, driven by the downgrade of U.S. credit ratings by Standard Poor's.

Ratings agency S&P's cut the U.S. long-term rating by one notch from AAA on Friday, capping a week that saw $2.5 trillion wiped off companies' values amid worries the United States is sliding back into recession.