Silver Smashes $60: Rate Cuts and Scarcity Fuel a Structural Bull Market

Summary

The global precious metals market has recently witnessed a historic milestone. On December 9, 2025, silver prices surged past the US$60 per ounce mark, touching an intraday high of US$60.56. This not only sets a new all-time high but also solidifies silver’s status as the "dark horse" of this year's financial markets. Year-to-date, silver has rallied approximately 100%, far outpacing gold's gain of around 59%. This performance demonstrates that the explosive potential of this "poor man's gold" in the late stages of a bull market has comprehensively surpassed that of traditional safe-haven assets.

Commentary

The primary catalyst is a major shift in the macroeconomic landscape. With markets anticipating a Fed rate cut on December 10 and the expected nomination of the dovish Kevin Hassett as Fed Chair, the outlook for "cheap money" and monetary easing has severely weakened the dollar and boosted inflation-hedging assets.

Supply and Demand Fundamentals Underpinning this rally is a fragile supply structure. Unlike gold, silver is driven by massive industrial demand (solar, EVs, and grid infrastructure), which reached record highs in 2024. The market has faced a supply deficit for four consecutive years—148.9 million ounces in 2024 alone—while Chinese inventories have plummeted to decade lows.

Sentiment and Outlook Market sentiment was further ignited by a recent CME trading outage, which sparked liquidity fears and accelerated capital flows into physical assets. Experts view this as a structural bull market, predicting that strong industrial demand and loose monetary policy will see silver continue to outperform gold through 2026.