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Silver Surges: White Metal Hits New Highs!
22 Dec
Summary
- Silver reached a new all-time high above $67 per ounce.
- Tight physical supply in London and China drives price increases.
- Industrial demand for silver in EVs and solar panels is growing.
The white metal, silver, has experienced a record-breaking performance this year, with its value more than doubling in 2025 and reaching a new all-time high above $67 per ounce internationally. Analysts foresee continued growth, predicting a potential 20% surge in the first quarter of 2026, with prices possibly reaching $70-80 by March. This upward trend is fueled by significant investor demand and persistent supply shortages.
The current rally is largely attributed to a tight physical supply in London and China. Increased exports to the US, combined with higher Comex premiums, have created a squeeze in the physical market. Furthermore, the growing popularity of silver Exchange Traded Funds (ETFs), backed by physical silver purchases, has intensified this supply pressure. Retail and high-net-worth individuals' investments in ETFs are now supported by nearly two years of global consumption demand.
Beyond its role as a store of value, silver's increasing industrial applications in solar panels, electric vehicles, and AI technologies are significant growth drivers. China's potential export restrictions starting in 2026 could further tighten the global market. While the supply deficit is expected to persist through 2026-27, price gains might be more moderate than in 2025. However, silver could still outperform gold in early 2026, though near-term caution is advised due to its inherent volatility.
