Demand spikes, inventories shrink, and investor interest pushes the white metal into historic territory.
London, 28 November 2025 – Silver prices soared to new all-time highs on Monday as growing expectations of a U.S. Federal Reserve interest rate cut and rising concerns over global supply shortages fueled an aggressive market rally. The metal, already one of the top-performing commodities of the year, has nearly doubled in value in 2025.
In European afternoon trade, New York silver futures rose 1.2% to $57.86 per troy ounce after reaching an intraday peak of $58.61. Spot silver jumped 1.7% to $57.35, hitting a high of $57.88 earlier in the session. Prices have surged 99% since January, outperforming gold, platinum, and most major commodities.
The latest rally followed a 10-hour market disruption on Friday when CME Group’s Illinois data center experienced a cooling-system failure, temporarily halting trading.
Why Silver Is Surging
Markets now estimate an almost 88% probability that the Federal Reserve will cut interest rates by a quarter point in December. Lower rates tend to boost non-yielding assets like gold and silver, making them more attractive to investors seeking stability in uncertain economic conditions.
Silver is also benefiting from fears that the U.S. may include the metal in future tariff strategies after it was added to the Geological Survey’s critical minerals list last month. This shift triggered strong inflows into the U.S. silver market as traders repositioned their holdings.
A Global Supply Crunch
Recent data shows inventories on the Shanghai Futures Exchange have fallen to their lowest level in 10 years, while stocks on the Shanghai Gold Exchange are at a nine-year low. Analysts attribute this decline to a spike in Chinese silver exports in October, much of which was shipped to London, currently facing severe physical silver shortages.
If Chinese exports decrease or reverse, global supply outside China could tighten even further.
Silver lease rates, which reflect the cost of borrowing physical metal, have also climbed sharply, signaling rising scarcity.
Meanwhile, London’s vaults, traditionally holding hundreds of millions of ounces, have seen steep declines. Concerns about potential U.S. tariffs and increased demand for silver-backed ETFs have pulled more metal out of circulation.
Investor Interest Reaches New Heights
With debt concerns rising across major Western economies and ongoing worries about currency value, investors are turning to precious metals as safe-haven assets. Gold prices have climbed 60% this year, surpassing $4,200 per ounce. Silver, however, has shown even stronger gains due to its smaller market size and higher sensitivity to dollar movements.
The gold-to-silver ratio has narrowed significantly now to around 73 ounces of silver for one ounce of gold, down from 89 ounces just a few months ago.
Silver’s appeal also stretches beyond investment circles. The metal is essential for solar panels, electric vehicles, and artificial intelligence semiconductor manufacturing, making industrial demand a major driving force behind its rise.
The Silver Institute forecasts the silver market will remain in deficit for the fifth straight year in 2025. With production constraints, booming industrial use, and accelerating investor demand, the white metal’s outlook remains strong.
