Silver price surpasses peak, "big players" buy up goods

(Dan Tri) - Demand skyrocketed, investors rushed to buy silver. Data shows that silver just ended the trading week at a record price.

Specifically, data from Kitco shows that silver prices just ended the trading week at a record high of over $57/ounce, up 98% compared to the beginning of the year.

Meanwhile, gold is testing an important resistance level at $4,200/ounce, representing an increase of nearly 61% since the beginning of the year.

The gold/silver ratio, which touched 100 in April, has fallen to 74 and broken a long-term support line. Some analysts believe that this silver rally could push the ratio back to 50. There are many reasons for silver to outperform in the coming period.

World silver price developments (Photo: Kitco).

First, investors have recognized the global scarcity of silver. Specifically, industrial demand linked to the rapid electrification of the economy has caused a significant supply deficit for five consecutive years.

Industrial demand is set to rise to 689.1 million ounces by 2024, from 644 million ounces the previous year, LSEG data showed.

Of this, 243.7 million ounces will be used for solar panel production, up from 191.8 million ounces in 2023 and up 158% from 94.4 million ounces in 2020.

Faced with soaring demand, above-ground inventories have been depleted, and the available metal is often not in the right form or in the right place. That imbalance has created a series of supply shocks in 2025.

Second, there was a huge investment wave at the beginning of the year, as evidenced by the huge amount of silver flowing into the US as traders prepared for the Trump administration’s new tax policy. Although silver was not taxed, concerns did not completely disappear, especially after Washington officially classified silver as a critical metal.

Meanwhile, strong buying from India continues to exert pressure, contributing to record global rental yields and premiums. Some silver has also been moved out of the US and China as traders take advantage of high premiums. However, rising demand in Asia is exacerbating the shortage.

With demand soaring and no other supply solutions in sight, analysts say silver's newfound strength is more than just a short-term blip.

Source: https://dantri.com.vn/kinh-doanh/gia-bac-vuot-dinh-tay-to-manh-tay-gom-hang-20251201100306761.htm