Silver demand explodes as the United States, China, India and central banks trigger a global metals rush

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Investors are rushing into the silver market:

Physical silver-backed ETF holdings jumped +15.7 million ounces in November.

Year-to-date, silver ETF holdings have increased in 9 out of the last 11 months.

Meanwhile, silver skew, an indicator of call-option volatility, jumped 8 percentage points over the last 2 weeks, to 10 percentage points, marking the highest premium over put options since March 2022.

Put differently, betting on higher silver prices is becoming extremely expensive.

Silver prices have soared +101% this year, on track for their 2nd-best annual performance in history, only below the +435% gain in 1979.

Precious metals are on fire.

In 2025, silver has emerged as one of the most dynamic commodities in global markets,
surging 57.03% year-to-date and breaching $55 per ounce by November . This meteoric rise reflects a confluence of macroeconomic forces, structural industrial demand, and central bank activity. For investors, the question is no longer whether silver is in a bull market but whether it represents a strategic allocation amid shifting global dynamics.

Monetary Policy and Central Bank Reserves: A Tailwind for Silver
The Federal Reserve’s anticipated dovish pivot has been a cornerstone of silver’s rally.
With an 80-87% probability of a 25-basis-point rate cut in December 2025, the opportunity cost of holding non-yielding assets like silver has plummeted.
Lower rates also weaken the U.S. dollar, making dollar-denominated commodities more accessible to international buyers and amplifying silver’s appeal as a hedge against currency devaluation.

https://www.ainvest.com/news/silver-sudden-surge-strategic-buy-2025-2511/

Silver outperforms gold, driven by industrial demand and a tightening supply deficit
As of late November 2025, silver had outpaced gold in investment returns — with spot silver up ~163 % since October 2023, versus ~142 % for gold — thanks to soaring industrial demand (especially solar) and a sharp supply squeeze.

https://www.reuters.com/markets/commodities/silver-quietly-outperforms-gold-precious-metal-podium-2025-11-27/

The Ministry of Commerce of the People’s Republic of China (MOFCOM) has issued Announcement 2025-No. 68, imposing stringent conditions on the export of three critical minor metals – tungsten, antimony and silver – for the period 2026-2027. The move reflects China’s intensifying resource-security agenda and tighter export controls over strategic materials.
https://www.msn.com/en-us/money/economy/breaking-china-tightens-its-grip-on-silver/ar-AA1PJkWh

Central banks are virtually absent from the silver market in 2024-2025, with one historic exception: Russia has become the first nation to explicitly announce silver purchases for state reserves during the current precious metals bull market, allocating $535 million over three years. This groundbreaking move comes as central banks continue their gold buying spree—purchasing over 1,000 tonnes annually since 2022—while completely ignoring silver, creating a stark disparity that may signal an unprecedented investment opportunity. The timing is critical: silver faces its fifth consecutive year of supply deficits, with industrial demand hitting record levels of 680.5 million ounces in 2024, while COMEX inventories plunge to 15-year lows.

https://www.gainesvillecoins.com/blog/central-bank-silver-purchases-russia-smart-money-2025

At least three central banks have already started buying silver, signaling its return as a monetary metal
https://goldsilver.com/industry-news/video/silvers-big-comeback-3-central-banks-already-in-whats-next/

Central banks worldwide are reassessing their reserve strategies as traditional treasury-based systems face unprecedented challenges. The growing trend of central banks purchasing silver represents a strategic shift toward physical assets that eliminate counterparty risk, moving away from debt-backed instruments. This fundamental transformation signals a return to historical monetary practices where precious metals served as the foundation of international settlement systems.

The current monetary architecture, built primarily around government securities, confronts mounting pressure from escalating sovereign debt levels and geopolitical tensions. Furthermore, as nations seek greater monetary independence, silver emerges as a complementary asset to gold in diversified reserve portfolios, offering unique advantages for institutional investors.

https://discoveryalert.com.au/central-banks-purchasing-silver-2025-reserve-shift/