Silver has smashed through the US$ 80-per-ounce mark for the first time in history, capping a remarkable year-long rally that also saw gold and platinum reach all-time highs. As of December 29, 2025, spot silver spiked to an intraday high of US$84 before stabilizing at around US$80.24, closing out what analysts are calling a generational bull run.
Driven by a potent combination of macroeconomic, industrial, and geopolitical forces, silver surged a staggering 181% year-to-date, far outpacing gold’s impressive 72% gain. The white metal’s acceleration in December alone, over 40%, marks its best annual performance since 1951.
At the heart of silver’s extraordinary rise is a persistent and deepening mismatch between supply and demand. The global silver market has experienced supply deficits for five consecutive years, as mine output struggles to keep pace with burgeoning consumption. Inventories at major hubs, such as the Shanghai Futures Exchange, are at their lowest levels since at least 2015.
Much of the available physical silver has been funneled into warehouses in New York, pending the outcome of a US Commerce Department review into whether imports of critical minerals, including silver, pose a national security risk. It has raised the specter of new trade tariffs or restrictions, further tightening the physical market.
In response, buyers are reportedly paying up to a 7% premium for immediate delivery of silver, underscoring the scarcity dynamics that have come to define the market over the past year.“It’s not just a speculative mania,” noted Tony Sycamore, a market analyst at IG Australia. “We’re witnessing a severe structural supply-demand imbalance that’s sparking a scramble for physical metal. It could continue well into 2026.”
Unlike gold, whose primary roles are as an investment and store of value, silver occupies a unique space in the global economy. Its high electrical conductivity and reflective properties make it indispensable in manufacturing solar panels, batteries, electric vehicles, electronics, and even artificial intelligence infrastructure. These real-world applications mean silver’s price is influenced not only by investor behavior but also by global industrial cycles and technological trends.
Elon Musk’s recent comment on Chinese export controls reignited enthusiasm for silver’s industrial importance. Responding on social media to news of China tightening restrictions, a country that ranks among the top three global producers and is also the largest consumer, Musk remarked: “This is not good. Silver is needed in many industrial processes.”Silver’s inclusion in the US critical minerals list, alongside growing industrial usage and persistent scarcity, has only heightened its appeal to traders and investors alike.
Global economic and geopolitical trends have also played crucial roles in pushing precious metals higher throughout 2025. Most notably, the US Federal Reserve has cut interest rates three times this year, with traders now pricing in two additional cuts in 2026. In a low-interest-rate environment, non-yielding assets like gold and silver become more attractive.
Moreover, the US dollar weakened, as reflected in the Bloomberg Dollar Spot Index, falling 0.8% last week, its steepest weekly drop since June, further supporting precious metal prices by making them cheaper for foreign buyers. On the geopolitical front, heightened uncertainty has driven investor interest in traditional safe-haven assets. Ongoing tensions in the Middle East, frictions in Venezuela, strikes against ISIS in Nigeria, and murmurings of a potential resolution to the war in Ukraine have all contributed to elevated demand for gold and silver.
Gold remained relatively steady in recent trading, hovering around US$4,527 per ounce after hitting a historic high of US$4,549.92 earlier the previous week. Platinum also notched a new record, touching US$2,478.50 before settling slightly lower.
Another factor contributing to the dramatic spike in silver is the market’s intrinsic volatility. Unlike gold, which boasts around US$700 billion in reserves held by central banks and can be lent out to provide liquidity in times of stress, silver has no such safety net. The total value of silver held in London, a key trading hub, is estimated to be just under US$50 billion, making the market more prone to sharp price swings in times of tight supply.“These are not just speculative headlines,” remarked Stephen Innes, managing partner at SPI Asset Management. “This is positioning colliding with scarcity on a global scale.”
Despite the bullish metals environment, regional equity markets offered a mixed response on December 29. Singapore’s Straits Times Index fell a modest 0.1% to 4,633.64, tracking movements across Asia where the Hang Seng shed 0.7%, and Nikkei 225 dipped 0.4%, while South Korea’s Kospi surged 2.2%.
Stock trading in Singapore remained active, with 1.1 billion securities worth S$810.6 million changing hands. Technology and banking sectors saw varied performance, while interest in commodity-related assets and exchange-traded funds gained steam.
While there is broad agreement on the strong fundamentals driving silver’s rise, some analysts caution that the rally may have gone too far, too fast. Technical indicators, such as the 14-day relative strength index, show silver moving deep into overbought territory, with readings approaching 80, well above the 70 threshold that typically signals a correction.
Nevertheless, the structural issues underpinning the rally from constrained global supply to robust industrial and investment demand remain unresolved. With silver production slow to ramp up and growing calls to secure critical minerals supply chains, the factors buoying silver may persist into 2026.“Make no mistake,” warned Sycamore. “We are witnessing a generational bubble playing out in silver. Whether it corrects in 2026 or continues its parabolic ascent, this will be a defining moment in the history of precious metals.” As bullion investors eagerly track further rate moves by the US Federal Reserve and geopolitical developments, silver’s spectacular 2025 run may not yet be over, but volatility is expected to stay high.