Silver breaks through new high of $59, up 100% year-to-date(, with three major drivers outperforming gold

International precious metals market rally shines: Spot silver price broke $59 in 5 days, hitting a historic high, as inventory shortages and green energy demand drive a market revaluation of metal value.

(Previous context: Liquidity expert Michael Howell: “Bitcoin and gold” are top choices as long-term inflation hedges)

(Background supplement: Rich Dad forecasts target prices for four major assets: gold $27,000, silver $100, bitcoin $250,000, ethereum $60,000; keep buying during market crashes)

International silver reached an intraday high of $59.33 per ounce yesterday (5th), setting a new all-time record and making it one of the best-performing assets of 2025. From around $29 per ounce at the beginning of the year, it has soared over 100% to its current historic high, significantly outperforming gold and bitcoin.

Gold (annual increase about 60%): Steadily rose from $2,624 at the beginning of the year, broke the $4,000 mark in the second half, and is now stable around $4,200.

Bitcoin (annual gain given up): Although bitcoin hit a historic high of about $126,000 in October, it then faced heavy selling, correcting over 25% in just two months. The current price has fallen below $90,000, with the annual cumulative return turning negative.

Silver price daily chart

Supply chain crunch: Shanghai inventory bottoms out

The following factors support silver’s historic high: declining inventories, increased industrial usage, and bets on pro-loose policy under a potential Trump administration. Data from the Shanghai Futures Exchange shows that by the end of November, silver warehouse stocks were only 446 to 531 tons, the lowest since 2015.

Industrial demand and ETFs drive prices higher

Silver has long been seen as a key metal for the green transition: irreplaceable demand from solar panels and EV conductive layers forces manufacturers to place orders at any price. Since 2021, the world has faced five consecutive years of supply shortages, with a cumulative gap of about 800 million ounces.

Meanwhile, according to Kitco analysis, global silver ETF holdings have risen to about 1.13 billion ounces, with European and Indian funds posting over 100% returns this year, further locking up liquidity as capital flows in.

Monetary environment: Trump 2.0 and rate expectations

The market is also betting on a Trump administration’s preference for a weaker dollar and pressure on the Fed. Most investors expect a rate-cutting cycle to begin in early 2026, which could directly benefit silver.

Wall Street outlook: Can high prices hold?

Facing the rapid rise, investment banks are optimistic but cautious. Citi forecasts a possible $62 price within three months; UBS raised its 2026 average price to $60. Goldman Sachs warns that if the Fed unexpectedly turns hawkish or end-of-year commodity index rebalancing triggers profit-taking, short-term volatility could intensify.

Considering the supply-demand gap, rigid demand from the energy transition, and a dovish monetary stance, pricing power is shifting from derivatives markets to physical holders. Silver is no longer just a substitute for gold, but plays an indispensable role in the global resource race.

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〈Silver breaks through $59 new high(annual gain 100%), three driving forces support outperformance over gold〉This article was first published on BlockTempo, the most influential blockchain news media.