Demand for gold and silver is at its second highest in history.

Trading volume on CME Group increased impressively in November

Average daily volume (ADV) on CME Group in November reached 33.1 million contracts, up 10% year-on-year, reflecting strong interest in hedging instruments amid rising commodity prices, according to a report released on December 2.

In the metals sector alone, CME Group said ADV increased 52%, most notably in gold and silver micro futures, which are becoming a popular product for individual investors who want to participate in the market at low cost.

The data also shows:

Micro Gold Futures (1/10 of a standard 100-ounce contract) reached 476,000 ADV contracts, up 235% year-over-year.

Silver Futures reached 108,000 ADV contracts, up 22%.

Micro Silver Futures (1/5 5,000 ounce silver contract) reached 75,000 ADV contracts, up 238%.

The surge in micro contracts shows a clear shift in capital flows from individual investors, a group that is considered flexible and sensitive to short-term price fluctuations.

Demand for gold and silver is at its second highest in history.

Silver's strong uptrend on Google Trends reflects market sentiment

According to Google Trends data for the last week of November, the keywords “silver price” and “silver futures” increased sharply in North America and Europe. The search boom coincided with a nearly 15% increase in silver prices in just one week.

Google Trends shows interest in silver is at its highest since July 2020, when silver had a similar surge.

Silver was the biggest draw in November, with the price of silver rising 18.6%, marking its biggest monthly gain since July 2020. Most of the gains came in the last week of November, when silver surpassed $55 an ounce for the first time in history, according to the CME report.

Notably, this price increase came right after silver trading on CME was interrupted for 10 hours due to technical problems. Operations were restored at the beginning of the North American session and prices continued to rise vertically, showing that retail money flows have not weakened.

Moving into December, silver continued its upward trajectory. In the most recent transaction, silver was recorded at $59.275/ounce, up more than 100% since the beginning of the year.

Market analysts believe that the current trend in silver is driven by two factors:

Retail investment demand continues to increase, as shown by micro futures volume.

Silver supply has declined for several consecutive quarters due to limited mining output and increased industrial demand, especially from the renewable energy sector.

The Silver Institute has warned that the global silver market has faced a shortage for several consecutive years, and the shortage is expected to continue to expand next year.

In a report to investors on December 2, Chris Mancini, co-manager of the GOLDX fund at Gabelli Funds, said that silver is still relatively undervalued compared to gold.

He cited historical data on the ratio of gold to silver:

“The long-term gold-silver ratio is around 68. It is currently at 74, suggesting silver has room to rise to return to equilibrium. If gold holds, silver could move from $58 to around $65 an ounce,” he wrote.

This assessment is consistent with the retail money flow trend that is prioritizing silver over gold due to its high volatility and higher expected profit margin.

Experts warn that as silver prices continue to hit new highs, volatility will increase significantly. However, CME Group data shows that steady demand from retail and institutional investors is supporting the long-term uptrend.

Amid geopolitical volatility, persistent inflation and expectations that the Fed will maintain its easing policy into 2026, precious metals are expected to continue to be an important hedging option.

Trading volume on CME Group increased impressively in November

Silver's strong uptrend on Google Trends reflects market sentiment

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