Gold Breaks $4,500: Precious Metals Emerge as the Trade of the Year as Investors Get “Smarter”

Silver Surpasses $75: A Historic Turning Point Confirmed

Chart: https://goldprice.org/

In December 2025, the international spot price of silver broke past $75 per ounce for the first time, repeatedly setting new records and quickly becoming the focal point of the global commodities market. Data indicates that this silver rally has delivered cumulative gains exceeding 140%, dramatically outperforming gold’s roughly 70% increase over the same period—a rare achievement for the year.

Leading financial media emphasize that this is more than a price milestone; it reflects the combined impact of financial dynamics and industrial demand, signaling a new era in silver market pricing.

Three Core Forces Driving Silver’s Price Surge

1. Industrial Demand Breakthrough: New Energy and Technology Applications Unlock Silver’s Value
   Silver serves as both a traditional precious metal and a vital industrial material, with broad applications in photovoltaics, electric vehicles, electronic components, and AI hardware. The photovoltaic sector, in particular, shows pronounced reliance on silver.
   As the global energy transition advances, the new energy revolution is reshaping demand for precious metals. Analysts expect industrial silver demand to continue rising for years to come, providing strong fundamental support for prices.
2. Safe-Haven and Investment Demand Accelerate
   Heightened geopolitical risks and mounting global economic uncertainty are driving sustained inflows of safe-haven capital into the precious metals sector. Silver’s dual role as an industrial metal and a monetary asset has restored investor interest.
   Additionally, growing expectations for Federal Reserve rate cuts and a weakening US dollar have reduced the opportunity cost of holding precious metals, boosting silver’s financial premium.
3. Tightening Supply and Falling Inventories
   Market analysts report that silver production growth has lagged behind demand expansion in recent years, while inventories have steadily declined, widening the supply-demand gap.
   Historically, supply-side constraints have triggered “supercycles” in commodities, and the current silver market clearly exhibits these conditions.

New Highs Alongside Gold: Silver’s Catch-Up Rally in Focus

Throughout precious metals cycles, gold typically leads the uptrend, while silver—owing to its lower valuation and greater industrial relevance—often accelerates in a catch-up rally during later stages.

This rapid surge in silver prices exemplifies the interconnected momentum of precious metals and the catch-up rally thesis, further intensifying market attention to silver’s medium- and long-term value.

Diverging Market Views: Frenzy and Caution Collide

As prices climb at a record pace, market sentiment on silver’s outlook has become sharply divided:

• Bulls argue that ongoing supply-demand imbalances and energy transition could push silver toward the $100 or even $200 range.
• Cautious analysts warn that the rapid short-term rally may trigger a steep correction, with prices potentially retreating to the $40 range.

This pronounced long-short split signals that the market has entered a phase of heightened volatility and sensitivity.

Future Outlook: Is the Structural Bull Market Still Intact?

Some institutions maintain that silver remains in a structural bull market, fueled by energy transition, technological demand, and monetary policy, with medium- and long-term trends unbroken.

Nevertheless, short-term price swings have become routine, and alternating pullbacks and rallies are expected.

Silver Investment Strategy Reference

• Long-term positioning: Monitor the sustained demand cycle from new energy and technology industries.
• Mid-term trading: Pay close attention to Federal Reserve policy, interest rate forecasts, and US dollar movements.
• Short-term tactics: Remain alert to correction risks at elevated levels and avoid emotional buying.

Conclusion

Silver’s break above $75 is not the result of a single catalyst, but the culmination of macroeconomic trends, industrial evolution, and enduring financial logic. The silver market is entering a new phase shaped by macro forces, technology, and capital.