Why are silver prices rising in December 2025? Silver has moved sharply higher this year, more than doubling and recording nominal all‑time highs several times as a rally that accelerated into December continued to push prices up. On COMEX, silver futures topped $67 per ounce last Wednesday, while spot markets in Asia have traded at even higher levels, signaling strong regional demand.
December 2025 price action: what happened
The rally in 2025 has been gradual but persistent, culminating in particularly strong performance in December. One concrete milestone is that silver futures reached over $67 per ounce on COMEX last Wednesday, reflecting both investment flows and industrial interest. Analysts quoted in the coverage note that the move follows a year in which prices more than doubled and hit nominal record highs multiple times.
Regional dynamics: Asian premium vs COMEX
Markets in Asia have recently traded above COMEX prices, creating an Asian premium that points to robust local physical demand. When regional spot markets run richer than exchange futures, that can make eastern markets de facto price setters for nearby buyers and sellers. This segmentation—futures liquidity on COMEX versus physical premiums in Asia—helps explain why headline COMEX levels do not always capture local cost for procuring metal.
Industrial demand drivers: batteries, data centers and PV
Beyond investment interest, silver’s industrial uses are central to the current narrative: it is used in photovoltaic cells and in data centers because it conducts electricity efficiently. Coverage also highlights rumors of a silver solid‑state battery program from BYD, the world’s largest EV company, which market participants see as an additional potential source of demand. Michael Steinmann, CEO of Pan American Silver, told CNBC that these applications require a lot of silver and that a significant supply response is unlikely in the near term.
Supply constraints and market structure
Supply dynamics have tightened: silver markets have been running deficits for five years, contributing to an ongoing supply crunch. Industry commentary in the story points out that there are few large silver projects close to production, which supports the view that supply will not surge quickly. In that context, continued industrial demand and limited new output underpin the current price environment.
Broader metals backdrop and outlook
The article notes that other industrial metals, such as copper, also performed exceptionally in 2025, underlining a broader shift toward demand for metals with industrial end uses. Some analysts in the coverage see factors that could support a path to three‑figure silver prices, though those forward‑looking views are presented as opinions rather than forecasts. For readers who follow wider market moves, this coverage sits alongside other recent market reporting on commodities and digital assets—see related crypto market coverage and price forecasts.
Why this matters (short, practical)
If you run 1 to 1,000 mining rigs in Russia, this story matters because industrial demand and tighter supply can keep physical premiums and local prices elevated even if COMEX levels fluctuate. Higher silver prices do not directly change electricity costs or hardware efficiency, but they can affect resale values for scrap and any on‑site silver‑containing components you might recover. Additionally, Asian premiums mean that physical buying costs may diverge from quoted futures, which affects anyone trading in physical metal or sourcing parts that use silver.
What to do (practical checklist)
- Monitor spot and futures: track both COMEX futures and local spot/premiums to know your true replacement or resale value.
- Review equipment and recycling: if you handle components with silver, consider whether recovery or recycling makes economic sense at current prices.
- Keep operational costs in focus: prioritize electricity efficiency and uptime, since revenue per device can change with metal prices but costs often do not.
- Stay informed on supply signals: watch industry statements and announcements for changes in project pipelines, but treat forward‑looking price paths as opinions, not certainties.
FAQ (concise answers)
- What milestone did silver hit in December 2025? — Silver futures exceeded $67 per ounce on COMEX, part of a rally that has more than doubled prices this year.
- Why are Asian prices higher than COMEX? — Strong localized demand in Asia has pushed spot prices above COMEX futures, creating regional premiums that can influence global pricing.
- Are industrial uses driving the rally? — Yes; demand for photovoltaic cells and data‑center conductors is cited, along with rumors of a BYD silver solid‑state battery program and commentary from industry leaders like Pan American Silver’s CEO.
- Is supply responding? — The market has run deficits for five years, and industry comments in the story say large new supply is unlikely in the near term, supporting tighter fundamentals.
