As of December 27, 2025, the "white metal" has shattered records, climbing to fresh all-time highs around $79 per ounce marking a staggering year-to-date gain of approximately 169%. This explosive rally,
far outpacing gold's 73% increase, emphasises silver's dual role as both an industrial powerhouse and a safe-haven asset.
Driven by persistent supply shortages, surging demand from solar panels and electric vehicles, and macroeconomic tailwinds like U.S. Federal Reserve rate cuts, silver's momentum shows no signs of abating.
Why Silver Prices Are Rising
Experts say silver’s sharp rise is not just speculation. It is driven by a mix of limited supply, strong industrial demand, safe-haven buying, and expectations that the US Federal Reserve will continue cutting interest rates.
Since silver does not offer interest like bonds, lower rates make it more attractive to investors.
Limited Supply Tightens Market
About 70–75 per cent of global silver production comes as a by-product of copper, lead, and zinc mining. This means higher prices do not quickly lead to increased silver output.
At the same time, silver inventories at major exchanges in London, New York and Shanghai have been declining, while physical shortages have been reported in markets such as China, tightening supply further.
Industrial Demand at Record Levels
Silver plays a crucial role in modern technology due to its unmatched electrical conductivity. Over 50–60 per cent of annual demand now comes from industrial uses, including:
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Solar panels, the largest consumer of silver
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Electric vehicles and charging stations, which use more silver than conventional cars
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Electronics, AI data centres, semiconductors and 5G infrastructure
Demand from these sectors has accelerated further in 2025.
Safe-Haven Buying Adds Support
Global geopolitical tensions and fears of currency weakness have increased demand for silver as a safe-haven asset. Investors tend to turn to precious metals during uncertain times.
Lower US interest rates, strong ETF inflows, and rising retail investment especially from India and Western markets have also pushed prices higher.
Other Key Triggers
Additional factors supporting silver prices include its recent classification as a US critical mineral, which could lead to strategic stockpiling, and a weaker US dollar, which typically boosts commodity prices.
Thin liquidity toward year-end has further amplified the rally.
Where Silver Started the Year
Silver began 2025 at around $29 per ounce. Its surge past $75 highlights the scale of the rally and growing investor confidence in the metal.
