Silver Up 110% Year-to-Date as the Metal Hits the Highest Price in History

Silver prices rose in both local and global markets during Wednesday’s trading, reaching an unprecedented level of $61 per ounce for the first time in history. The surge comes amid strong industrial demand, growing expectations of U.S. interest-rate cuts, and ongoing pressure on supply, according to a recent report issued by the Safe Haven Center.

The report indicated that local silver prices also increased, as the price of gram 800 rose by 1 pound today, moving from 74.5 to 75.25 pounds, while gram 925 stood at 87 pounds, and gram 999 at 94 pounds. The silver pound coin remained stable at 696 pounds.

Globally, the ounce climbed from $58.27 to $61, supported by strong buying momentum and an increasing shift toward building investment positions in precious metals markets.

Strong Outperformance vs. Gold and a Historic Ratio Between the Two Metals

The report highlighted the continued outperformance of silver over gold. The latest rally pushed the gold–silver ratio down to 69, its lowest level since July 2021. This comes after an exceptional year for the white metal, which has gained 110% since the start of 2025, outperforming gold and most industrial commodities.

Supportive Factors: Strong Industrial Demand and Constrained Supply

According to the report, the current momentum in silver is driven by several key factors, including:

Rapidly rising industrial demand from electronics, solar energy, and semiconductor sectors.

Global supply-chain disruptions that have caused supply shortages since August.

Renewed investor interest in silver as a hedging asset amid persistent market uncertainty despite partial improvements in global logistics.

Global Inventory Movements

The Safe Haven report showed that London Bullion Market inventories have risen by 1,447 tonnes since the beginning of the year, while COMEX stocks increased by 4,311 tonnes. Most of the global inventory remains concentrated in London at a ratio of 1.91 compared to COMEX stocks — the highest since January.

The report also noted that 78% of silver holdings in the London Bullion Market Association (LBMA) vaults are now represented by exchange-traded funds (ETFs), compared to 65% in November 2024.

Strong Inflows Into Silver-Backed ETFs

Silver-backed ETFs experienced their largest inflows since 2020, with holdings rising by 487 tonnes in November and more than 475 tonnes since the start of December, reflecting strong institutional entry into the market.

Despite the rise in investment demand, the increase in available volumes at the London exchange indicates a gradual improvement in market conditions.

Outlook: Room for More Gains… but Volatility Ahead

Standard Chartered Bank expects silver to have additional upside potential, but warned of possible short-term volatility as the market seeks a new equilibrium after recent sharp rallies.

Metals analysts also expect a mild corrective move before silver resumes posting new highs, particularly amid uncertainty linked to the Critical Minerals S232 report, which may intensify supply shortages in regional markets.

International Support from Global Reports

Data from Reuters, The Wall Street Journal, and the Financial Times support the view that silver is undergoing a “strategic transformation,” acting both as a core industrial metal and a major investment asset. Forecasts point to silver trading in the $55–70 range in the near term.

Despite exceptional performance, analysts caution that prices could decline if U.S. economic data improves or if production increases in major mining regions worldwide.