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 attention-grabbing investment tools in 2025. This year, while gold reached record levels, silver also showed a similar rise. With the US Federal Reserve's (Fed) planned interest rate cuts approaching year-end and increasing demand for silver in the technology sector, the precious metal surpassed 60 dollars for the first time in its history.

Market Effects and Expectations

In the spot market, silver has broken a new record by rising above the 60 dollar level. Throughout 2025, alongside the tariffs imposed by the US and global economic uncertainties, while gold also reached record levels, falling interest rates and a weakening dollar have directed investors towards safe-haven assets like silver and gold. The Fed is expected to announce a 25 basis point cut in its policy rate this evening.

Reasons Behind Increased Demand

An analysis on BBC noted that Yeow Hee Chua from Nanyang Technological University stated, "As the return on holding cash in banks decreases with interest rate cuts, demand shifts to assets like silver, which are seen as value storage." While gold has gained more than 50% in value this year, the value increase in silver has also attracted significant interest.

The Role of the Technology Sector

According to analysts, strong demand from the technology sector has pushed silver prices to more than double this year, exceeding supply. Silver is not only a precious metal but also 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 increasingly need."

Stockpiling Movements in the US

Additionally, silver production cannot be rapidly increased because a large portion of global production is obtained as a by-product in mines where metals like copper or lead are extracted. Concerns over potential customs tariffs in the US have caused silver prices to rise even further. This situation has triggered stockpiling activities in the US and led to difficulties in global supply. The US imports about one-third of the silver used for production and investment purposes, and producers are quickly stockpiling to prevent disruptions in their supply chains.