Silver Prices Hit Record High as Global Shortage Deepens

The silver market is experiencing a severe shortage. Demand for the precious metal is being fueled by a weakening dollar and expectations of further Federal Reserve rate cuts.

Silver Reaches Historic Record

On Thursday, October 9, December silver futures rose 1.97% on the Comex exchange, reaching $49.965 per ounce as of 16:10 Moscow time, setting a new all-time record. The previous record was set on April 25, 2011, at $49.82 per ounce. Since the beginning of the year, silver has surged nearly 70% in value, driven largely by a long-term structural deficit, RBC reports.

According to investment strategist Alexey Mikheev from VTB My Investments, at the current pace of demand, existing silver reserves will last for only about three years. The shortage stems from industrial use, which accounts for more than 60% of total global demand. Silver plays a crucial role in manufacturing solar panels, whose production continues to grow rapidly.

Limited Supply and Industrial Dependence

Mikheev explained that silver production remains relatively insensitive to rising prices, as about 80% of global silver output comes as a byproduct of mining other metals. Unlike gold, where increased production can quickly affect prices, the silver market faces no such immediate risk of oversupply.

Forecasts Indicate Continued Growth

Analysts at Finam expect silver prices to remain in the range of $44.7–49.8 per ounce during the fourth quarter of 2025, with potential for further growth. Should prices break and consolidate above these levels, analyst Nikolai Dudchenko sees the possibility of silver reaching $55 per ounce.

Experts at VTB My Analytics also believe silver is not an overvalued asset and still holds significant growth potential, although the pace of increase is likely to slow. Analysts predict that within the next year, silver could reach $60 per ounce, sustained by ongoing market shortages.