Silver’s meteoric rise in 2025 has sent shockwaves through global financial markets, culminating in record-breaking highs and wild swings that have left investors, traders, and analysts scrambling to make sense of the new landscape. As the year draws to a close, the precious metal has not only eclipsed traditional benchmarks like gold but is now on the cusp of becoming the world’s second-most valuable asset, trailing only gold itself in market capitalization.
On December 29, 2025, spot silver prices retreated by 5% after a staggering 33% surge in December alone, as reported by Seeking Alpha. This pullback came on the heels of a year marked by unprecedented gains, with silver rallying over 192% since January, far outpacing gold’s impressive 73% rise during the same period, according to The New Indian Express. The retreat was widely attributed to profit-taking and a sense that the market, having gone almost vertical, was due for a breather.
Just a day earlier, silver had briefly soared above $80 an ounce for the first time ever, before sliding sharply in volatile trading, Reuters noted. The spot price ultimately peaked at $82.95 an ounce on December 29, up 2.55% in a single day and 18.38% over the past week, as global investors flocked to precious metals amid expectations that the U.S. Federal Reserve will cut interest rates in 2026. The prospect of easier monetary policy, combined with a weaker dollar—which hovered near its lowest in almost three months—helped fuel the surge, with Asian stocks also reaching six-week highs.
India, a major consumer of both gold and silver, has felt the impact of this rally acutely. On December 26, domestic gold prices hit a record 139,286 rupees per 10 grams, while silver prices in Delhi reached a monthly high of 2,51,000 rupees per kilogram on December 27, before easing slightly, according to Goodreturns. In cities like Chennai, Hyderabad, and Kerala, silver traded at even loftier levels—around 2,73,900 rupees per kilogram—reflecting both global supply constraints and strong local demand, as reported by The New Indian Express.
The underlying drivers of silver’s explosive ascent are multifaceted. Analysts point to a potent combination of tight supply, surging industrial demand, and speculative inflows. The Economic Times highlighted silver’s critical role in high-growth sectors such as solar panels, electric vehicles, and electronics, which has kept traders on edge for sharp pullbacks even as the broader outlook remains supportive. Charu Chanana, chief investment strategist at Saxo, succinctly captured the mood: “Add supply worries and the move has turned parabolic.”
Further stoking the fire, China announced a ban on silver exports effective January 1, 2026, a move that has intensified supply constraints and reinforced the structural bullish outlook for the metal. Manav Modi, a commodities analyst at Motilal Oswal Financial Services, explained, “China is also ready to set export restrictions on silver from January 1. There are no sanctions, but control of the metal in other markets increases further bottlenecks in the market.”
Speculative inflows, lingering supply dislocations from an October short squeeze, central bank buying, and ETF inflows have all contributed to the rally, according to Renisha Chainani, head of research at Augmont Enterprises. She noted that silver crossed the $80 mark last week—a 16% gain in just seven days, 40% for the month, and a staggering 175% for the year. “This rise has been fueled by speculative inflows, residual supply disruptions from an October short squeeze, central bank buying, ETF inflows, and three US Fed rate cuts, with markets gradually pricing in another easing in 2026,” Chainani told The New Indian Express.
The volatility hasn’t been limited to silver. Gold futures climbed to a record high of $4,581.30 per ounce on the CME last weekend, while platinum and palladium also saw sharp swings after touching all-time highs, Reuters reported. Yet, it’s silver that has truly captured the market’s imagination. The white metal’s market capitalization reached $4.22 trillion as of December 26, 2025, just 8.1% behind Nvidia’s $4.592 trillion, and overtaking tech giants Apple and Alphabet. Surendra Mehta, national secretary of the India Bullion & Jewellers Association, remarked, “The way silver is moving, it is likely to be the second-most valuable asset, surpassing Nvidia and he thinks that the silver price may further surprise everyone, as the white metal is moving from the LBMA vault to China for better pricing.”
India’s domestic market has mirrored the international frenzy. Silver futures on the Multi Commodity Exchange (MCX) peaked at 2,53,280 rupees per kilogram of 999 purity on December 29, up 5.63% from the previous close, while gold futures peaked at 1,39,940 rupees per 10 grams, marking the seventh consecutive positive weekly close. According to Goodreturns data, silver on the MCX soared from 91,600 rupees on December 26, 2024, to 2,53,000 rupees on December 29, 2025—a jaw-dropping 156.14% increase in just one year.
The rally has not been without its challenges. In India, the surge in prices has widened discounts as retail demand cooled, with dealers offering markdowns of up to $61 an ounce versus official domestic prices, inclusive of import and sales taxes. The festive travel season has also contributed to a slowdown in demand, and market participants expect that buying may remain muted for weeks unless prices correct meaningfully, Reuters reported.
Looking ahead, the consensus among strategists is that while the broader backdrop remains supportive for precious metals—thanks to expected Fed rate cuts, steady investor allocations, and ongoing industrial demand—sharp short-term swings are likely to persist, especially in silver. Support and resistance levels for gold are seen at $4,450 and $4,575 per ounce internationally, while silver’s are pegged at $75 and $82.5 per ounce, respectively, according to Chainani. Domestically, those levels translate to 1,36,000 and 1,40,500 rupees per 10 grams for gold, and 2,40,000 and 2,54,000 rupees per kilogram for silver.
Goldman Sachs analysts remain bullish, with as much as 70% of global institutional investors expecting gold prices to increase further next year, and some setting near-term targets as high as $5,000 per ounce. Meanwhile, silver’s role as both an industrial and investment metal, coupled with ongoing supply disruptions and shifting global trade dynamics, suggests that its wild ride may be far from over.
As 2025 comes to an end, silver’s stunning ascent stands as a testament to the unpredictable forces shaping today’s commodity markets. With China’s export ban looming, global rate cuts on the horizon, and industrial demand showing no signs of abating, all eyes will remain fixed on the white metal as it writes a new chapter in financial history.
