Business & Economics
Silver Shatters $79/oz Record as Physical Shortage Deepens
Between 26-27 December 2025, spot silver pierced the $79 an ounce mark for the first time, capping a year-to-date surge of more than 150% and triggering visible strain in London’s bullion vaults.
Focusing Facts
- Spot silver touched $79/oz on 26-27 Dec 2025, representing roughly a 169% rise since 1 January 2025.
- BlackRock’s iShares Silver Trust expanded holdings to about 529 million oz (≈ $39 bn) during the week to meet ETF inflows.
- On 23 Dec 2025 the 1-year silver swap minus U.S. rates plunged to –7.18%, a level traders equate with acute physical tightness in the London market.
Context
Silver last went parabolic during the Hunt brothers’ squeeze in January 1980, when prices spiked to $50/oz before collapsing; then again in April 2011 they kissed $49 amid post-crisis QE. 2025’s breakout differs: demand is now anchored in structural electrification—solar, EVs, 5G—rather than purely speculative leverage, while mine supply is flat and 70% by-product-dependent. Washington’s 2025 designation of silver as a “critical mineral,” coupled with swap spreads signalling vault depletion, suggests the paper-to-physical disconnect that underpinned both earlier bubbles may be nearing a systemic limit. On a 100-year arc, this moment sits at the intersection of two long waves: the retreat from dollar hegemony (accelerating precious-metal stockpiling by investors and some central banks) and the century-long electrification of everything, which embeds silver in real-world infrastructure. Whether the price holds or whiplashes, the episode underscores a shift from episodic speculative squeezes toward a planet-scale tug-of-war between industrial necessity and financialised promises of metal that may not exist.
Perspectives
Indian investor-oriented financial news outlets
e.g., The Times of India, TimesNow — Portray silver’s record-breaking surge as a rare wealth-building opportunity powered by booming industrial demand, safe-haven flows and tight supply, suggesting everyday investors may benefit by adding the metal to their portfolios. Coverage tends to hype spectacular returns and national price milestones to attract retail readers, glossing over volatility and the risk of sharp corrections that could burn late entrants.
Alternative precious-metal commentators and hard-money blogs
e.g., SGT Report — Argue that an intensifying physical shortage—evidenced by negative London silver swap spreads—shows the paper market is cracking and prices must rise much further until supply-demand ‘reconnect’. Leans into a crisis narrative that boosts newsletter traffic and reinforces long-held claims of systemic manipulation, so may overstate scarcity and dismiss contrary market data.
Global commodities/crypto niche media
e.g., Cryptopolitan — Highlight the historic rally but stress that silver remains a tiny, highly volatile market where retail ‘dumb money’ could see prices double or crash within weeks, urging caution and explaining complex trading routes. Uses sensational language and big vault numbers to drive clicks while simultaneously covering itself with warnings, creating a dramatic but inconsistent picture of opportunity versus danger.