Rising 5%, multiple factors resonate, silver hits new high again

Silver surged 5%

According to the Commodity Market Analysis System of Shengyi Society, the average price of silver market on December 10, 2025 was 14319 yuan/kg, with a daily increase of 4.95%, which is 6.75% higher than the average price of 13414 yuan/kg at the beginning of this month (December 1); Compared to the beginning of the year (January 1st), the average price of silver in the market was 7450 yuan/kg, an increase of 92.20%.
On December 10, 2025, the benchmark price of Shanghai Silver (silver ingots with a standard weight of 15 kilograms and a purity of not less than 99.99%, pricing contract) on the Shanghai Gold Exchange was 14318 yuan/kg, an increase of 739 yuan/kg from the benchmark price of 13579 yuan/kg on the previous trading day.
On December 10th, silver futures and spot prices continued to reach new highs, with London silver rising nearly 1% and Shanghai silver main contracts experiencing a daily increase of up to 5.27%.
Multi factor resonance supports the surge of silver prices
The recent surge is the result of the resonance of various factors such as industrial demand, supply and demand patterns, financial policies, and capital inflows. The specific reasons are as follows:
1. The outbreak of industrial demand has formed strong support:
The proportion of silver industry demand has risen to 65%, becoming the dominant force in prices. The photovoltaic industry is the core source of incremental growth. By 2025, the global silver consumption for photovoltaics will double compared to 2022, and the popularization of N-type batteries will further increase the silver consumption per GW. In the fourth quarter, global photovoltaic companies will increase orders for stocking up in 2026, resulting in a significant increase in silver demand from November to December; At the same time, AI computing power servers and data center orders remain strong, and their single cabinet silver consumption is much higher than that of traditional equipment. In addition, the silver consumption of new energy vehicles per vehicle far exceeds that of traditional fuel vehicles. These high growth areas have jointly driven up the demand for silver industry.
2. The contradiction between tight supply and worsening inventory shortage:
The global silver market has been in short supply for five consecutive years, and the supply gap is expected to reach 95 million ounces by 2025. On the supply side, 70-80% of silver is a byproduct of metals such as copper and lead. The expansion of main mineral resources is slow, and the fourth quarter production of mines in major producing areas such as Mexico and Peru is lower than expected. Mexico also plans to increase export tariffs to further restrict supply. In terms of inventory, LBMA silver inventory has decreased by one-third from its peak in 2022, and Shanghai Futures Exchange inventory has also dropped to a nearly 10-year low. Global exchange inventory is only enough to support 3-9 months of consumption, and the tight supply of available goods continues to push up prices.
3. Expectations of Federal Reserve interest rate cuts activate financial attributes:
According to CME’s “Federal Reserve Watch”, the probability of the Fed cutting interest rates by 25 basis points in December is as high as 87.6%. Cutting interest rates will reduce the opportunity cost of holding interest free assets such as silver, while also suppressing the US dollar. Silver is priced in US dollars and is extremely sensitive to changes in the US dollar. A weaker US dollar will enhance the investment attractiveness of silver. In addition, the potential next chairman of the Federal Reserve holds a dovish stance, and the market expects multiple interest rate cuts in 2026, further strengthening the financial support of silver’s attributes.
4. A large influx of investment funds is driving the upward trend:

The price of silver is much lower than that of gold, attracting many investors seeking low-cost safe haven assets. Position data shows that COMEX’s non-commercial net long position in silver has reached a historic high, with the world’s largest silver ETF increasing its holdings by over 500 tons within six months; The trading volume of silver T+D in the domestic market increased by 30% in half a year, while speculative long positions increased by 12% in a single month. At the same time, the gold to silver ratio has fallen to around 72, although still higher than the long-term average, the trend of price correction has accelerated the shift of funds from gold to silver, forming a positive feedback of upward trend.
5. Macro risk aversion provides additional impetus:
At present, the debt level of major western economies is rising, the scale of US treasury bond bonds is high, coupled with the geopolitical risks such as the continuation of the Middle East conflict, the global credit and monetary system is impacted, and investors have increased the allocation of precious metals to avoid currency depreciation and economic fluctuation risks. Silver, as a safe haven and price advantage
Market forecast: Long term trend is good, short-term vigilance against pullbacks and high volatility
On December 10th, silver prices hit a historic high, with an increase of over 92% compared to the beginning of the year (1.1), nearly doubling. Silver prices may face high volatility and pullback risks in the short term, while in the medium to long term, they are likely to maintain an upward trend due to fundamental support.