Silver Blasts to Record Above $62 After Fed Cut as ‘Devil’s Metal’ Sparks Talk of $100

Published: December 11, 2025

Silver — long dismissed as gold’s hyperactive little cousin — has just smashed through another all‑time high and marched firmly into the financial headlines.

On Thursday 11 December, spot silver hit a new record around $62.88 per ounce before easing slightly, extending its 2025 gain to roughly 115%. The latest surge followed a divided U.S. Federal Reserve decision to cut rates by 25 basis points, even as policymakers signalled caution about further easing. ^[1]

In India, one of the world’s most important silver markets, the move has been even more dramatic: domestic futures on the Multi Commodity Exchange (MCX) have climbed to about ₹1,93,452 per kilogram and are up more than 120% year‑to‑date, with the gold–silver ratio now near 68, a multi‑year low that underscores silver’s recent outperformance. ^[2]

Against this backdrop, analysts and commentators — including those cited by CNBC, the BBC, and precious‑metals specialists — are openly debating a once‑taboo question: could silver really run toward $100 per ounce?

1. What just happened to the silver price?

A new nominal record

According to Reuters, spot silver on 11 December traded above $62 per ounce, setting yet another intraday record and bringing its 2025 gain to roughly 115%, fuelled by strong industrial demand, tightening inventories and the metal’s recent addition to the U.S. critical minerals list. ^[3]

The rally caps what several research houses describe as silver’s strongest year since the late 1970s. Earlier this month, a TechStock² (TS2) review noted that silver spent early December consolidating around $58–59/oz, already above the famous 1980 and 2011 peaks in nominal dollar terms. TechStock²

In London, BullionVault reported that on Wednesday 10 December, silver peaked above $61/oz, marking the fifth new all‑time high in just eight trading sessions this month. ^[4]

Gold up… but overshadowed

Gold has also had a blockbuster year, trading around $4,200/oz after the Fed’s December cut. But silver has decisively stolen the show:

Business Standard estimates silver prices are up around 91% in 2025, while gold funds have gained about 65%. ^[5]
Livemint puts domestic spot silver gains near 115%, outpacing even India’s stellar performance in gold. ^[6]

In short: gold is in a powerful bull market — but silver is in something more explosive.

2. Why has silver hit a record high?

The BBC article linked by you, “Why has the price of silver hit a record high?”, summarises what many research houses are now saying: the price spike is not about a single factor but a stack of overlapping forces. Those same themes run through BullionVault’s “shortage vs. price feedback loop” analysis and multiple institutional reports.

2.1 Structural supply deficits

The Silver Institute and research firm Metals Focus expect 2025 to be the fifth consecutive year of a structural market deficit, with demand outstripping supply by about 95 million ounces. Over 2021–2025, the cumulative shortfall is estimated near 820 million ounces — roughly an entire year of global mine production. ^[7]

Key points:

Mine output has struggled to grow; in fact, studies suggest silver production has been trending lower since a 2016 peak, with small annual declines. ^[8]
Around 70–80% of newly mined silver is a by‑product of mining other metals like lead, zinc, copper or gold. That means miners can’t quickly ramp silver supply just because its price is rising. ^[9]
Even with higher prices, analysts see limited near‑term supply response, forcing the market to draw down above‑ground stocks.

In other words, the world is using more silver than it is producing — and has been for years.

2.2 Industrial demand: green tech, EVs and AI

Unlike gold, silver is not just a store of value; it is also an industrial workhorse. Industrial uses now account for more than half of total silver demand, according to ING and the Silver Institute. ^[10]

A new Silver Institute report, “Silver, The Next Generation Metal”, highlights three big drivers: ^[11]

Solar photovoltaics (PV)
- Solar was only 11% of silver industrial demand in 2014, but by 2024 it had jumped to around 29%.
- Rapid global solar build‑out — including the EU’s target for 700 GW of solar capacity by 2030 — keeps demand elevated.
Electric vehicles (EVs) and electrification
- EVs and hybrids use significantly more silver per vehicle than traditional cars due to wiring, power electronics and sensors. ^[12]
Data centers and AI infrastructure
- High‑performance computing and AI data centers rely on silver’s exceptional electrical and thermal conductivity, adding yet another layer of demand.

A number of analysts quoted by CNBC and NDTV argue that silver is morphing into an “industrial growth metal”, not just “poor man’s gold”. ^[13]

2.3 ETF inflows and speculative flows

The “devil’s metal” nickname exists for a reason: silver is notoriously volatile, and 2025 has amplified that trait.

The Silver Institute reports that silver‑backed exchange‑traded products (ETPs) saw net inflows of about 95 million ounces in the first half of 2025, lifting total holdings to roughly 1.13 billion ounces by June — close to prior record highs. ^[14]
ING notes that lease rates — the cost of borrowing silver in London — remain elevated, evidence of tight physical supplies and heavy positioning. ^[15]
NDTV and other outlets, citing Invesco and StoneX, describe how London vault holdings fell by roughly a third between 2022 and early 2025, with overnight borrowing costs briefly spiking towards 200% annualised, classic hallmarks of a squeeze. ^[16]

This cocktail of ETF buying, futures short‑covering and physical tightness is exactly the kind of backdrop that makes silver’s moves so extreme — and why hedge funds once branded it the “devil’s metal”.

2.4 India’s outsized role

Several analyses, including TS2, Business Standard and BusinessStory, stress that India has become the single most important physical demand engine: TechStock²+2Business Standard+2

India now consumes around 4,000 tonnes of silver per year, mainly for jewellery, utensils and decorative items.
Local prices hit about ₹170,415 per kg in October, an ~85% rise since the start of the year, and have now punched through ₹1.9 lakh/kg in some reports. ^[17]
Farmers and households often favour gold and silver over bank deposits after the harvest, while the Diwali festival adds seasonal demand.

The result: local buying has amplified the global rally, especially when combined with a weaker rupee and higher import costs.

2.5 Macro backdrop: Fed cuts, weaker dollar, geopolitical tension

Finally, silver is benefitting from the same macro winds that support gold:

The Fed has started cutting rates, though in a rare divided vote, and markets expect further easing in 2026, which reduces the opportunity cost of holding non‑yielding assets like precious metals. ^[18]
A softer U.S. dollar and worry about sovereign debt and political risk, including tensions around tariffs and trade, have heightened interest in “real” assets. ^[19]
Central banks remain aggressive buyers of gold, and some reports suggest at least a few are starting to diversify modestly into silver, adding another buyer at the margin. ^[20]

Put together, it’s not hard to see why both CNBC and the BBC are fielding the same reader question: Is silver in a bubble, or are these prices justified by fundamentals?

3. Is there really a “silver shortage”?

The word “shortage” appears frequently in this week’s coverage, but the reality is more nuanced.

3.1 Deficit vs. shortage

Most serious analysts distinguish between:

Structural deficit: annual demand > annual supply
Acute shortage: buyers literally unable to source metal at any price close to spot

Today’s market clearly shows a structural deficit:

The Silver Institute and Metals Focus estimate a 95 Moz deficit in 2025, the fifth straight year of shortfall, with a cumulative ~820 Moz gap since 2021. ^[21]
ING and others highlight that mine supply is flat to slightly down, while recycling has only inched higher. ^[22]

However, that doesn’t mean the world has literally run out of silver. In fact, BullionVault notes that:

London vault inventories have recently risen, up about 3.5% in November to over 27,000 tonnes, from record lows earlier in the year. ^[23]
Shanghai Futures Exchange stocks have also rebounded from their nadirs, even if they remain relatively tight. ^[24]

What we’re seeing is a chronic tightness where metal is available — but often at higher prices, with higher borrowing costs, and with regional imbalances. That’s enough to fuel squeezes and volatility without a full‑blown physical crisis.

3.2 “Shortage vs. price feedback loop”

BullionVault describes 2025 as a classic “shortage vs. price feedback loop”: ^[25]

Years of deficits and rising industrial demand draw down inventories.
Tight stocks push prices up, attracting momentum traders and ETF inflows.
Those inflows remove even more metal from the market, tightening supply further.
Higher prices eventually start to choke off some demand (jewellery, silverware, marginal industrial uses), while encouraging more recycling.

The loop doesn’t mean prices will only go up. It means each correction is happening from a higher base, so long as the underlying deficit persists.

4. The $100 silver question: realistic target or hype?

CNBC’s coverage and follow‑up pieces across global financial media have openly floated the idea of $100 silver, citing both structural bulls and more cautious mainstream forecasts.

4.1 What mainstream banks say

A survey compiled by TS2 of major banks and research houses shows a surprisingly tight band for 2026 forecasts: TechStock²

Bank of America, UBS, Deutsche Bank and others cluster around average prices in the mid‑$50s, with potential spikes towards $60–65/oz.
More cautious houses like HSBC and Citigroup still see scope for silver to consolidate lower, around $40–43/oz over a 6–12‑month window.

ING’s own 2026 outlook expects silver to average around $55/oz, with continued volatility but some cooling after this year’s huge gains. ^[26]

4.2 The super‑bull camp

On the other side, structural bulls — including some miners and specialist funds — argue that:

Multi‑year deficits of hundreds of millions of ounces are unsustainable at current price levels. ^[27]
New green‑tech demand (PV, EVs, grid upgrades) will keep rising, while supply remains constrained. ^[28]
Once investors realise how small the silver market is relative to gold, even modest reallocations from gold or equities can move prices dramatically.

Forecasts cited across TS2, Crux Investor and GoldSilver.com include: TechStock²+2Crux Investor+2

Targets of $65–95/oz over the next 12–24 months from some commodity strategists.
Individual commentators — including long‑time silver bulls — who see $100+ as “possible under aggressive Fed easing, persistent deficits and strong green‑tech demand”.

Most of these bulls, however, frame $100 as a scenario, not a base case: it would likely require a perfect storm of loose monetary policy, continued deficits and sustained investor euphoria.

5. What today’s move means for investors

Nothing in this article is personal financial advice, but it’s worth summarising how professionals suggest thinking about silver after such a huge rally.

5.1 Silver is high‑risk, not a core portfolio anchor

Business Standard, citing Indian fund analysts, stresses that silver should be treated as a tactical or “satellite” allocation, not a core wealth‑building asset. Typical guidelines include: ^[29]

Keeping gold + silver to perhaps 5–10% of a diversified portfolio.
Recognising that silver’s risk rating is “Very High”, with large, sudden drawdowns possible.

Because silver behaves like “gold on steroids”, it tends to amplify both gains and losses relative to gold. ^[30]

5.2 Short‑term traders vs. long‑term holders

Analysts in TS2 and other outlets draw a line between: TechStock²+1

Short‑term traders, who may see current levels as overbought and look to trade volatility around support/resistance zones (for example, $58–60 on the upside and the low‑$50s on the downside).
Long‑term investors, who focus on the multi‑year deficit + green‑tech story and may be willing to tolerate sharp corrections as part of a broader secular uptrend.

For both groups, experts hammer the same message: position sizing and risk management matter far more now that silver has already moved this far, this fast.

6. Key risks that could derail the rally

Even analysts who are constructive on silver emphasise several clear risks:

More hawkish central banks
- If inflation re‑accelerates or growth holds up better than expected, the Fed and peers could slow or reverse rate cuts, strengthening the dollar and raising real yields — usually bad news for precious metals. TechStock²+1
Demand destruction and “thrifting”
- At very high prices, manufacturers look for ways to reduce silver content (thrifting) or substitute other materials where feasible. The Silver Institute already expects industrial demand to fall modestly (~2–4%) this year, even though investment demand has more than offset the drop. ^[31]
Economic slowdown in key sectors
- A sharper‑than‑expected global slowdown could hit electronics, solar and EV demand, undermining the industrial pillar of the bull case. ^[32]
A supply response over time
- If prices remain very high for years, new mines, by‑product expansions and better recycling technologies could eventually ease the deficit and cap upside. ^[33]
Speculative unwind
- Because ETFs, managed‑money futures and retail investors have piled into silver, any shift in sentiment can trigger a rapid, self‑reinforcing sell‑off, just as we’ve seen in prior cycles.

The bottom line: today’s market is structurally tight and fundamentally supported — but also extremely fragile.

7. Outlook: a new era for the “devil’s metal”?

The picture that emerges from CNBC, the BBC, BullionVault and a wide range of institutional research is surprisingly consistent:

Silver is in the midst of a historic re‑pricing, driven by multi‑year deficits, green‑tech demand and heavy investment flows. ^[34]
Prices around $60–63/oz represent a new nominal high, but are still far below inflation‑adjusted peaks from 1980, which some estimates put near $190/oz in today’s money. TechStock²+1
Most mainstream forecasts don’t assume a straight line to $100; they see continued volatility and elevated but not exponential price paths. The super‑bull scenario is possible, but requires a confluence of supportive forces.