December 10, 2025 — Driven by multiple factors including expectations of Federal Reserve rate cuts, global supply shortages, and its inclusion in the U.S. "critical minerals" list, silver prices surged, breaking the $60 per ounce mark on Tuesday and setting a historic high. Silver has seen a gain of nearly 110% this year, far outpacing both gold and platinum.

(Image source: Zhongjin Online)

Federal Reserve Rate Cut Expectations Fuel Silver Price Surge

One of the key factors driving the surge in precious metals prices, including silver, has been the Federal Reserve’s signal of potential interest rate cuts in the second half of 2025. Market participants are widely expecting the Fed to further ease monetary policy in upcoming meetings, prompting investors to flock to safe-haven assets like silver to hedge against potential economic risks. Silver, as a relatively more flexible precious metal, has shown a strong demand for hedging, especially in an environment with shifting interest rates.

Supply Shortages Contribute to Silver Price Surge

Another major factor driving the rise in silver prices is the global supply shortage. As mineral resources around the world continue to deplete, silver mining has become increasingly difficult. In key producing countries, rising mining costs and stricter environmental regulations have further constrained the supply of silver, which cannot keep up with growing demand. The supply tightness has triggered a surge in silver prices, pushing them even higher

Inclusion in U.S. "Critical Minerals" List Sparks Hoarding Effect

Additionally, the news that silver has been added to the U.S. "critical minerals" list has created a hoarding effect in the market. The U.S. government plans to increase its strategic reserves of critical minerals, including silver, to mitigate potential future supply risks. This move has drawn significant attention from both domestic and international investors and businesses, further stimulating demand for silver and driving its price up.

Silver Outpaces Gold and Platinum by a Wide Margin

In 2025, after multiple shocks to the global precious metals market, silver has stood out with remarkable performance. So far this year, silver has gained nearly 110%, far exceeding the performances of both gold and platinum. In comparison, gold has gained around 60%, while platinum has seen much smaller gains. This trend indicates that investor interest in silver is rising, and the metal is becoming an increasing focus in the market.

Market Outlook: Will Silver's Strong Bullish Momentum Continue?

Although silver prices have reached a historic high, there is still potential for further price increases. In the coming months, as the Federal Reserve adjusts its policy, global economic uncertainty rises, and industrial demand for silver continues to grow, the price of silver is expected to rise even further. However, the market also warns that silver may face a technical pullback, and investors should remain cautious.

Conclusion: Silver Becomes an Investment Favorite, with Potential Still Unleashed

Overall, silver, with its impressive price surge and safe-haven properties, has gradually become a new favorite among investors. With ongoing global economic shifts and rising demand for precious metals, silver's investment potential remains far from fully realized. For investors, silver may prove to be an attractive long-term investment target, particularly as the Fed’s rate cut expectations and supply shortages continue to drive its upward momentum, leaving considerable room for further gains.