Silver prices declined sharply on Dec 29, 2025, crossing **$80 per oz** for the first time, after touching highs around **$83–$84/oz** intraday, falling by over 5–8% due to profit-booking.
The white metal later traded around **$76–$79/oz**, reflecting increased volatility due to low liquidity over the holidays. On India’s MCX, March silver futures crossed **₹2,50,000/kg** intraday (record ~₹2,54,000), after which it fell to ~₹2,40,000-₹2,49,000 levels.
The 2025 rally—up **~160–180% YTD** from ~$29/oz at the start of the year—is silver’s best yearly performance since 1979 (>200% gain), outpacing gold’s ~70% rally.
Reasons include structural supply shortages (sixth consecutive year), strong industrial demand (solar, EV, electronics), US key mineral status, weak dollar, Fed rate-cut expectations, and geopolitical tensions (e.g., US-Venezuela issues).
One key reason: **China’s upcoming export restrictions/licensing** on silver starting January 1, 2026, which has increased supply concerns. Unlike gold, silver lacks large lendable reserves, further exacerbating scarcity.
Analysts say low inventory and a rapid drain on liquidity are fueling the volatility. Elon Musk has warned of the impact of rising costs on manufacturing.
The long-term outlook remains bullish, but profit-taking is expected to moderate near-term volatility. Commodity markets are very volatile; Do independent research.
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