Silver breaks through a new high of $59, with three major driving forces supporting its outperformance of gold
The international precious metals market has seen eye-catching gains: spot silver prices exceeded $59 on the 5th, hitting a record high. Inventory shortages and demand for green energy have driven the market to re-evaluate metal values.
(Preliminary summary: Liquidity expert Michael Howell: "Bitcoin and gold" are the first choices for safe-haven assets for long-term inflation)
(Background supplement: Rich dad predicted the target prices of four major assets: gold $27,000, silver $100, Bitcoin $250,000, Ethereum $60,000. If the market crashes, you should continue to buy)
Contents of this article
International silver hit $59.33 per ounce in yesterday (5) trading, hitting a record high and becoming the 2025 One of the most outstanding performing assets of the year. From around $29 an ounce at the beginning of the year, it has soared over 100% to its current all-time highs, significantly outperforming gold and Bitcoin.
Gold (~60% annual gain): Rising steadily from $2,624 at the start of the year, it broke through the $4,000 mark in the second half and is currently stable around $4,200.
Bitcoin (gave back all annual gains): Although Bitcoin hit an all-time high of about $126,000 in October, it subsequently suffered a sharp sell-off, with a correction of more than 25% in just two months. The price is now back below $90,000, and the cumulative return for the year has turned negative.
Supply chain breakpoint: Shanghai inventory bottoms
As for the background of silver hitting record highs, it is supported by the following points: declining inventories, growth in industrial usage, and bets on the Trump administration's easing policies. Data released by the Shanghai Futures Exchange showed that there were only 446 to 531 tons of silver remaining in warehouses at the end of November, the lowest level since 2015.
Industrial demand and ETFs double push up
Silver has long been regarded as a key metal for green transformation: the irreplaceable demand for solar panels and the conductive layer of electric vehicles forces manufacturers to continue to place orders at any price. Since 2021, the world has experienced five consecutive years of supply shortages, with a cumulative shortfall of approximately 800 million ounces.
On the other hand, according to Kitco analysis, global silver ETF holdings have risen to approximately 1.13 billion ounces. European and Indian funds have returned more than 100% this year, and capital inflows have further locked in liquidity.
Monetary environment: Trump 2.0 and interest rate expectations
At the same time, the market is betting that the Trump administration prefers a weak dollar and puts pressure on the Federal Reserve. Investors generally expect a rate-cutting cycle to begin in early 2026, with silver expected to directly benefit.
Wall Street View: Can high prices stand firm
In the face of rapid rises, investment banks have given prospects but retained warnings. Citigroup forecasts it could hit $62 within three months; UBS raised its average price to $60 in 2026. Goldman Sachs warned that short-term volatility may intensify if the Fed unexpectedly turns hawkish, or if the rebalancing of the commodity index at the end of the year triggers profit-taking.
Based on the supply and demand gap, the rigid demand for energy transformation and the loose monetary tone, pricing power is shifting from the derivatives market to physical holders. Silver is no longer just a stand-in for gold, but plays an indispensable role in the global race for resources.
