Factors Behind the Record Rise in Silver Prices

Historical Rise in Silver Prices

The price of silver per ounce has become one of the most eye-catching investment assets of 2025. This year, while gold reached record levels, silver also showed a similar rise. With the Federal Reserve (Fed) planning interest rate cuts as the year comes to a close and the increasing demand for silver in the technology sector, the precious metal has surpassed $60 for the first time in its history.

Market Effects and Expectations

In the spot market, silver has exceeded the $60 level, setting a new record. Throughout 2025, together with the tariffs imposed by the U.S. and global economic uncertainties, while gold reached record levels, the decline in interest rates and the weakening dollar have directed investors towards safe-haven assets such as silver and gold. In the decision expected to be announced by the Fed this evening, a 25 basis points cut in the policy rate is anticipated.

Reasons Behind the Increase in Demand

An analysis on BBC by Yeow Hee Chua from Nanyang Technological University stated, "As the returns on holding cash in banks decrease due to interest rate cuts, the demand for assets perceived as value storage, such as silver, is shifting." While gold has gained more than 50% in value this year, the increase in silver's value has also attracted significant interest.

The Role of the Technology Sector

According to analysts, strong demand from the technology sector has more than doubled silver prices within the year. Silver is not only a precious metal, but has also become a critical material for electric vehicles (EVs), solar panels, and advanced battery technologies. Kosmas Marinakis from Singapore Management University stated, "Silver is a physical resource that manufacturers are increasingly in need of."

Stockpiling Movements in the U.S.

Moreover, silver production cannot be rapidly increased; because a large portion of global production is obtained as a by-product from mines where metals like copper or lead are extracted. Silver prices have risen further due to concerns over possible customs tariffs in the U.S. This situation has triggered stockpiling activities in the U.S., leading to an imbalance in global supply. The U.S. imports approximately one-third of the silver for production and investment purposes, and producers are quickly stockpiling to prevent disruptions in their supply chains.