Silver prices have experienced a significant increase in December, reaching a record high of $79 per ounce. This surge, part of a broader precious metals rally, is attributed to expectations of US interest rate cuts in 2026, increased demand for silver in various industries, and supply-demand imbalances. The rally is supported by expectations of multiple Fed rate cuts, alongside robust central bank and private investor buying. Gold and platinum also reached record levels on Boxing Day, with platinum up roughly 170% this year.
Silver has risen sharply during December, part of a precious metals rally that also pushed gold and platinum to record levels on Boxing Day. Analysts have attributed the jump in prices to expectations of US interest rate cuts by the Federal Reserve in 2026, leading to increased demand for hard assets that protect against inflation and currency debasement.
Silver hit $79 an ounce for the first time last Friday, a new peak, up from $56 at the start of December, and just $29 an ounce at the start of 2025.Uses for the metal include in electrification, solar power panels, electric vehicles and data centres, all areas in which demand has been rising, eating into silver inventories.Tony Sycamore, a market analyst at IG, said a “generational bubble” was playing out in silver, as more capital was drawn into the precious metals market. “The rally in precious metals has been supported by expectations of multiple Fed rate cuts in 2026, alongside robust central bank and private investor buying. However, the dominant driver of late has been a severe structural supply-demand imbalance in silver, sparking a scramble for physical metal,” Sycamore said. According to Bloomberg, much of the world’s readily available silver is sitting in New York awaiting the outcome of a US commerce department investigation into whether imports of critical minerals pose a national security risk. The review could pave the way for tariffs or other trade curbs on the metal, Bloomberg said. Gold and silver are on track for their best years since 1979. Gold has risen by more than 70% this year to more than $4,500 an ounce, up from $2,623 at the start of 2025.Both platinum and palladium, which are key components in automotive catalytic converters, have surged on tight supply, tariff uncertainty, and rotation from gold investment demand, with platinum up roughly 170% this year.Bitcoin’s buzz is gone. Investors chose real gold in 2025Gold price tops $4,000 for first time as investors seek safe havenPrice of gold eases after Trump rules out tariffs on imported barsGold prices hit record high amid prospect of US interest rate cuts
Silver Precious Metals Interest Rates Inflation Market Analysis
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