Silver shot up to an unprecedented US$58.81 per ounce on Monday as the metal is becoming increasingly imperative in multiple industries. Demand in solar tech, electric vehicles and electronics has never been higher.
Recent activity in China is also a significant factor driving the rally. Inventories in warehouses with ties to the Shanghai Futures Exchange just hit the lowest level observed in over a decade.
In early November, China agreed to tighten its rules on high purity silver exports significantly and will require much more extensive documentation from companies that want to ship bullion abroad. This change will make far less silver available beginning next year and has escalated supply fears. China and Mexico are the world’s top silver producers.
Speculation about the American Federal Reserve cutting interest rates this month has supported the metal’s upward pricing trajectory too.
“The underlying environment of expectations of further rate cuts, along with inflationary pressure still above the Fed target, is still the underlying support in gold and silver,” stated High Ridge Futures metals trading director, David Meger.
The commodity is now arguably drawing an equivalent or greater amount of attention than gold. Silver presents a more affordable opportunity for the average investor in comparison to the more valuable precious metal.
Percentage wise, silver’s climb year to date has exceeded gold by over 36 per cent, more than doubling in value.
Michael Oliver, founder of research firm Momentum Structural Analysis, estimated last week that silver could rapidly take off in 2026 and hit US$200 per ounce. The metal’s growing industrial demand and outperformance of gold has prompted his firm to scrap their previous US$60 to US$70 target.
Read more: Dubai sets Guinness World Record with largest silver bar of all time
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