Why Silver Is Racing Toward Record Peaks: Breaking Down the All-Time High

Silver just shattered expectations, hitting US$60.56 per ounce this Tuesday and marking a fresh all-time high — but this isn’t just about a single spike. The white metal has been on a tear since late November, and traders are watching multiple forces align to keep the momentum going.

The Perfect Storm: What’s Driving This Rally?

The catalyst kicked off when CME Group experienced a significant trading disruption on November 28 at one of their Chicago-area data centers. While markets resumed operations by early morning, the outage — one of the longest in years for the exchange — created uncertainty that rippled through precious metals markets. That jolt proved to be just the opening move.

More critically, the Fed’s December meeting (wrapping Wednesday, December 10) is now fueling serious rate-cut expectations. CME’s FedWatch tool shows the market has shifted decisively toward expecting another reduction. This matters enormously for silver because lower rates typically boost precious metal valuations.

The Policy Wildcard

Compounding the rate outlook, President Donald Trump announced plans for a new Fed chair replacement. While unnamed, insiders point to Kevin Hassett, head of the White House National Economic Council, as the leading contender. Trump has been vocal about wanting faster rate cuts, and a potential Hassett appointment signals alignment with that agenda. In his CBS appearance, Hassett hinted at the market implications: “The American people could expect someone focused on cheaper car loans and lower mortgage rates.” That statement alone gave precious metals another boost.

Silver vs. Gold: The Unexpected Winner

Here’s where it gets interesting. Silver typically lags gold before staging dramatic reversals — and right now, it’s actually leading on percentage gains. Year-to-date, silver has climbed roughly 100 percent, dramatically outpacing gold’s 59 percent rise. Gold remains below its all-time high despite trading above US$4,200 per ounce, which underscores silver’s exceptional outperformance.

Structural Supply Constraints Adding Pressure

Beyond macroeconomics, supply-side factors are tightening the market. Chinese silver stockpiles recently hit a decade-low after massive shipments to London, according to Bloomberg’s November reporting. That squeeze is coinciding with tariff concerns and silver’s new designation as a critical mineral in the United States — both providing fundamental support.

Industrial demand adds another layer. The Silver Institute reported that 2024 industrial consumption hit a record 680.5 million ounces, driven by grid modernization, EV electrification, and solar photovoltaics. Even as total demand dipped 3 percent annually, supply shortfalls persisted — 2024 saw a deficit of 148.9 million ounces, marking the fourth consecutive year of undersupply.

What’s Next?

Some market observers are already positioning for silver to continue outpacing gold into 2026. Jay Martin of VRIC Media captured the sentiment: “The sure money is made in gold, but the big money is made in silver — and that pattern holds true across precious metals cycles.” Whether these expectations materialize depends on Fed decisions, inflation trajectories, and whether supply tightness accelerates further.

The all-time high for silver suggests the market is pricing in multiple bullish scenarios simultaneously — and traders are paying close attention to whether this momentum can hold.