The silver price surged past its’ previous historic highs, set decades ago, during the time the Hunt brothers of Texas tried to corner the market.
Back then, the squeeze was tight, but in the end increased production prevented the brothers from outright control and forced retreat.
This time round, it’s different.
Highs of over US$60 have been hit, as the momentum in silver, ever the laggard, has finally caught up to gold.
It’s not just keeping up with gold that’s driving the silver price up, though.
It’s also persistent supply deficits, explosive industrial demand, safe-haven buying amidst global uncertainty, a weaker U.S. dollar, and expectations of Federal Reserve interest rate cuts, which were duly delivered.
The rally gained momentum at the end of Q3 and accelerated into Q4 2025, breaking through key psychological resistance levels, including the long-standing $50 an ounce mark and the previous October high of approximately $54.50.
The current price is sitting at over $63 per ounce.
A major contributing factor has been the structural deficit. It’s the fifth consecutive year that demand has outstripped supply. This deficit is not just an abstract financial metric; it translates into physical market tightness, with registered inventories in major trading hubs like the COMEX in New York and the Shanghai Futures Exchange declining significantly, leading to a potential physical "silver squeeze".
Industrial demand is a primary driver, accounting for over half of global silver consumption. The global push for green energy has made silver an indispensable component in solar panels, where its superior electrical conductivity is critical.
The electric vehicle and advanced electronics sectors have also driven demand higher.
This industrial demand has proven to be largely price-inelastic, meaning manufacturers are forced to secure supplies regardless of price increases, because running out of silver is not an option for production lines.
Simultaneously, mine supply has struggled to keep pace due to lower ore grades, labour disputes, and underinvestment in new primary silver mines. There haven’t really been any big new primary silver mines for many years. Most silver production comes as byproduct of other metal extraction operations, notably lead and zinc.
Against this backdrop, macroeconomic forces have reinforced the bullish trend. The U.S. Federal Reserve's recent pivot toward interest rate cuts in December 2025 has been a major catalyst.
Lower interest rates decrease the opportunity cost of holding non-yielding assets like precious metals, making them more attractive to investors. This has occurred alongside a general weakening of the U.S. dollar index (DXY) to around 98.55, further boosting the appeal of dollar-denominated commodities for foreign buyers. Geopolitical tensions and concerns over sovereign debt sustainability have also spurred robust safe-haven buying, with investors retreating from government bonds and currencies in what some analysts have termed the "debasement trade".
Not surprising, then, that sentiment among investors remains strongly bullish, with many analysts raising price targets; some even predict the metal could reach $75 per ounce as the current momentum continues into 2026.
There’s also talk of U.S. tariffs on silver, which have led to stockpiling and fears of a sudden premium for U.S. metal, adding another layer of volatility and price support.
In the UK, though, investors aren’t exactly spoiled for choice when it comes to silver mining. There’s Hochschild Mining (HOC), Fresnillo, and Alien Metals. After that, it pretty much tails off.
But in Canada there’s a lot more to choose from. There, the pick of the pack, boasting track records as long as your arm, include First Majestic, Fortuna, Guanujuato, Pan American Silver, and MAG Silver. For exploration, there’s also Pinnacle Gold & Silver, which has been hitting the headlines lately with progress at its Mexican project.
Investors can also gain more diversified exposure via some of the streaming and royalty companies, like Wheaton Precious and Royal Gold, which recently swallowed up Sandstorm.
Will the price strength continue?
Well, some analysts think the price looks toppy at this level, and poised for correction. Certainly, there’s that factor of industrial demand to consider – it’s never consistent nor predictable, but many economists think the global economy is itself in for a tough time, and that could bounce back onto silver.
But on the other hand, the gold:silver ratio over the years has been a pretty good guide for the silver price, even if there is a delayed effect. And the gold price looks likely to stay consolidated about US$4,000 for the foreseeable future. That alone will keep silver at fairly elevated levels.
Bear in mind, though, that adjusting for inflation, the price silver hit during the Hunt Brothers’ speculation in today’s money would be around US$200. So, in real terms there could still be a lot further to run.