Why has the price of silver reached a record high?
The price of silver has reached its highest level ever. This happened because the US Federal Reserve is expected to cut interest rates soon, and because the technology industry continues to use a lot of silver.
On Tuesday, silver went above $60 (£45.10) an ounce for the first time in the spot market, where metals are bought and sold for immediate delivery.
Gold, which already hit record levels earlier this year due to worries about US tariffs and the global economy, also rose in price this week.
When interest rates drop and the US dollar becomes weaker, investors usually move their money into precious metals like gold and silver.
The US central bank is expected to cut its main interest rate by 0.25% on Wednesday.
According to Yeow Hwee Chua from Nanyang Technological University, when interest rates fall, holding cash or buying short-term bonds becomes less attractive. So investors often buy assets like silver instead.
This shift toward “safe” assets has also pushed gold to new record highs, reaching over $4,000 an ounce.
Christopher Wong from OCBC Bank says silver’s rise may also be a “spillover effect” from gold’s surge, as investors look for cheaper alternatives. Gold prices have risen more than 50% this year, partly because central banks have been buying large amounts of it. Prices of platinum and palladium have also increased.
Demand is higher than supply
Experts say silver prices are rising because technology companies need more silver than what is currently available.
This strong demand has more than doubled silver’s value this year, making it perform better than gold and other precious metals.
Kosmas Marinakis from Singapore Management University says silver is both an investment and a useful industrial material. More factories now need silver because it conducts electricity better than gold or copper. It is used in electric vehicles (EVs), solar panels, and other high-tech products.
As EV sales grow, experts expect silver demand to rise even more. New types of advanced batteries will also require more silver.
However, increasing silver supply quickly is difficult because most silver is produced as a by-product when mining other metals like lead, copper, or gold.
Silver prices are also rising because of worries that the US might introduce tariffs on silver under President Donald Trump’s trade policies.
These fears have caused companies in the US to stockpile silver, creating shortages in other countries. The US imports about two-thirds of its silver for manufacturing, jewellery, and investment.
Manufacturers are now rushing to secure silver supplies, which is pushing global prices even higher, says Prof Marinakis.
He also expects silver prices to stay high in the coming months.
Published: 11th December 2025
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