Silver gains exceeded 100%.. What is behind the historical rise of the white metal?

The price of silver recorded a record high level, today, Wednesday, with the white metal exceeding the threshold of $61 per ounce for the first time in history.

This coincided with expectations "Almost certain" The US Central Bank will reduce the main interest rate by a quarter of a percentage point today, Wednesday, and it is also expected that this reduction will be accompanied by a rise in safe assets such as gold, silver, and other Precious metals.

Gains exceeding 100%

Silver started 2025 at a price of 29.5 $per ounce, recording as of today, Wednesday, $61.4 per ounce, with gains exceeding 100%, outperforming gold, whose gains since the beginning of the year amounted to about 60%.

Experts say that the value of silver has risen as a result of strong demand from the technology sector that has exceeded supply, expecting demand for silver to continue during the coming months.

Cosmas Marinkis from Singapore Management University said: "Silver is not just an investment asset, it is also a physical asset, and manufacturers are increasingly seeking it."

This precious metal, which has better electrical conductivity than gold or copper, is used in the production of goods such as Electric cars and solar panels.

Experts expect that rising sales of electric cars will lead to increased demand for silver, while advanced batteries for cars will require larger quantities of this metal.

Difficulty of extraction puts pressure on supply

Despite the growing demand, it is difficult to increase silver supplies quickly, because most of the global production is a byproduct from mines that primarily extract other metals such as lead, copper and gold.

There are also fears that the United States will impose tariffs. Tariffs on it, as part of President Donald Trump’s trade policies, are also contributing to the rise in prices.
These concerns have prompted investors to hoard silver in the United States, causing shortages in other regions of the world.

The United States imports about two-thirds of its silver needs, which are used in manufacturing, jewelry making and investment, while manufacturers are scrambling to secure supplies to ensure that their operations continue without interruption due to shortages, which has contributed to rising prices in global markets.

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