Since 2025, silver futures have skyrocketed over 220%, approaching $95/oz, even outshining gold. In mid-October, silver briefly dropped more than 10% but quickly rebounded to hit new all-time highs.
Epic Short Squeeze
The silver market hasn’t seen such a squeeze since the Hunt Brothers incident in 1980. Following a temporary supply disruption in China, overseas long positions pushed silver prices sharply higher, forcing shorts to liquidate.
- London silver inventories have shrunk 75% since 2019, with only 200 million ounces freely tradable;
- Silver lease rates surged above 40%, with overnight costs exceeding 100% in early October 2025;
- Silver futures jumped from $47 to $54 in just four trading days.
Later, supply relief and potential Russia-Ukraine ceasefire talks caused a short-term pullback, but the squeeze resumed in early November, doubling prices again.
Supply-Demand Tightness Supports Long-Term Trend
- Industrial, jewelry, and silverware demand account for 58%, 18%, and 5% respectively;
- Photovoltaic industry demand alone reached 17%, surging from 2,300 tons to 6,100 tons in five years;
- Global silver supply has been in deficit for four consecutive years, totaling 20,000 tons.
Financially, silver often follows gold. Rising gold prices trigger arbitrage flows into silver, further pushing up its price.
Upstream Miners Are Biggest Beneficiaries
Top silver miners like Xingye Silver & Tin and Shengda Resources have significantly increased production, enjoying much higher margins than midstream smelters. In 2025, the stock prices of these four major miners doubled, with Xingye Silver & Tin surging over threefold.
Despite high valuations and some shareholder sell-offs, the super cycle continues, and silver may yet reach new historical peaks.
