Silver Shatters Records, Breaching $61 for the First Time

The price of silver surged to an unprecedented peak on Wednesday, decisively clearing the $61 barrier. In a dramatic 24-hour rally, the metal catapulted from $58.60 to $61.47, marking a gain of nearly 5%. This historic move is fueled by a persistent structural supply deficit, robust industrial demand, and anticipation surrounding the upcoming Federal Reserve policy meeting.

The scale of silver's performance in 2025 is staggering. Year-to-date, the metal has soared by 96.77%, effectively more than doubling in value. This outperforms gold, which, over the same period, has posted a comparatively modest 60% advance. The momentum has been particularly intense recently, with prices climbing over 26% in just one month.

A critical factor underpinning this strength is a severe drawdown in inventories. Stockpiles in China, a major consumer, have reportedly fallen to their lowest level in a decade.

The Dual Engine: Scarcity and Demand

The foundation of this rally is a deep and lasting market tightness. The historic supply squeeze that rattled the London market in October continues to reverberate. Global inventories remain constrained, with mine production consistently failing to keep pace with consumption.

On the demand side, industrial appetite shows no signs of abating. Silver is a crucial component in the energy transition, consumed in ever-increasing quantities for solar panels, electric vehicles, and various electronics. This structural deficit between supply and industrial use appears firmly entrenched.

Should investors sell immediately? Or is it worth buying Silber Preis?

Fed Policy Adds Speculative Fuel

Market expectations are providing an additional catalyst. Traders are currently pricing in an approximately 85% probability of a 25-basis-point interest rate cut at the Fed's December 9-10 meeting. Lower interest rates tend to enhance the appeal of non-yielding assets like precious metals, offering a potential tailwind for the ongoing rally.

This dynamic is attracting speculative capital. Silver-backed exchange-traded funds (ETFs) recorded their strongest weekly inflows since July last week. Furthermore, trading volumes in call options have surged to levels comparable to those seen during the short squeeze event in October.

Outlook Beyond the Record High

Where does silver go from here? Analysts at Bank of America maintain a long-term price target of $65 per ounce. Short-term technical models suggest a potential move toward the $63 to $65 range by mid-December.

However, cautionary notes are emerging. Some market observers warn that the rally may be overheated, with current prices potentially trading as much as 15% above fair value. The ascent could be tempered by a more hawkish-than-expected communication from the Federal Reserve or an unexpected surge in production. For now, however, the narrative is dominated by tangible physical scarcity and sustained institutional demand.