BUSINESS – Silver prices climbed to remarkable heights this week, with spot silver briefly topping $75 per ounce for the first time ever as global precious metals markets extended an extraordinary rally that has drawn investor attention and shaken up commodity benchmarks. According to Reuters, silver rose about 3.5% to $74.46 per ounce in early trading before peaking at a record $75.14, a milestone that reflects a combination of investment demand, industrial use and macroeconomic optimism around looser U.S. monetary policy next year.
Traders and analysts say several factors have converged to fuel this surge, chief among them expectations that the U.S. Federal Reserve could cut interest rates in 2026. Those rate-cut bets have softened the dollar, making non-yielding assets like silver more attractive as inflation hedges. Lower interest rates reduce the opportunity cost of holding precious metals, thereby lifting demand from both speculative traders and longer-term investors.
Industrial demand has also played a significant role. Silver isn’t just a store of value — it’s a critical input in solar panels, electronics and electric vehicle components — and robust demand from these sectors has tightened inventories, giving prices an extra push. Meanwhile, geopolitical tensions in various regions have spurred safe-haven flows into metals more broadly, contributing to silver’s upward momentum alongside gold and platinum, which also hit record levels this week.
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Market conditions around year-end, with relatively thin liquidity, have amplified price swings and allowed momentum-driven players to exert a stronger influence. Kelvin Wong, a senior market analyst at OANDA, noted that speculative investor behaviour along with a weaker dollar and expectations of sustained rate cuts “have been powering the rally in gold and silver since early December,” helping precious metals climb to fresh record highs.
The rally has been dramatic: silver’s gain this year vastly outpaces the performance of many other asset classes, with year-to-date increases well into triple digits, according to broader market commentary. This explosive growth has drawn attention from both retail and institutional investors, with exchange-traded funds tied to bullion seeing inflows and mining stocks linked to silver responding positively.
Despite the euphoria, some observers caution that such rapid moves can introduce volatility — especially when trading volumes thin as markets close for the holidays. Still, the current trajectory reflects deeply rooted demand drivers, from industrial necessities to safe-haven hedging against economic uncertainty and geopolitical complexity.
For now, silver’s break above $75 per ounce marks a historic chapter in its long-term price story, underscored by fundamental shifts in investor sentiment and global market dynamics — a vivid illustration of how commodities can become focal points in broader financial narratives.
