Silver Surges Amid Deficit and Industrial Demand
Silver prices remained high on December 16, 2025, despite a slight correction in global markets after last week's significant surge. Spot silver fell by around 2-3% from its record high above US$64 per ounce due to profit-taking, but overall, the metal remained near its all-time high. This decline occurred amidst a weakening US dollar, which had previously boosted precious metal prices, and volatile trading conditions.
Fundamentally, silver continues to be driven by a structural imbalance between demand and supply. Global industrial demand—particularly for clean technologies like solar panels, electric vehicles, and electronic devices—continues to increase and accounts for the largest share of silver consumption. Meanwhile, physical supply remains tight as mine production is stagnant and most silver is produced as a byproduct of other metal ores. This imbalance has created a market deficit that has persisted for several years.
Furthermore, investment interest has also increased sharply, particularly through silver ETFs, which have seen significant inflows, reducing available physical stocks and putting further downward pressure on prices. Other macroeconomic factors, such as expectations of interest rate cuts by the Federal Reserve and a weakening US dollar, have also strengthened silver's appeal as a hedge. However, volatility remains high, and analysts warn that price movements could change rapidly as the market reacts to new global economic data. (az)
Source: Newsmaker.id
