Silver prices skyrocketed by over 90% this year, analyzing the reasons behind it.

Since the beginning of this year, the price of silver has been steadily increasing, even surpassing the traditional "safe-haven asset" gold in terms of gains. The significant rise in silver prices this year can be attributed to a combination of factors such as cultural and festive consumption, strong demand from the industrial sector, and continuous supply shortages. Firstly, India, the world's largest consumer of silver, has seen a surge in demand this year. It is reported that India consumes around 4,000 tons of silver annually, mainly for jewelry, utensils, and decorations. About 80% of India's silver is imported, with the United Kingdom being its largest supplier for a long time. With the sharp increase in demand from India, market pressures quickly spread to London. At one point, the market was so tight that some traders had to resort to using airplanes instead of ships for silver deliveries, and overnight borrowing costs for silver even soared to an annualized rate of 200%. Another important factor driving the strength of silver is its industrial uses. Silver has the highest thermal and electrical conductivity among all metals. Analysis shows that although silver supply has exceeded industrial and consumer demand over the past eight to nine years, this trend has recently reversed. Lastly, the supply side of silver is also facing pressure. According to the "Global Silver Survey 2025" released by the Silver Institute, global silver mine production has been declining over the past decade. Industry experts point out that only about 28% of global silver production comes from "primary silver mines," with the majority coming from by-products of copper or gold mines. As for future trends, BNP Paribas predicts that the price of silver may reach $100 per ounce by the end of next year.