Wedoany.com Report-Dec.10, Spot silver reached $60 per ounce for the first time in history on Tuesday, marking a significant milestone for the precious metal.

The breakthrough reflects a sustained market deficit combined with growing industrial and investment demand throughout 2025. Silver has now risen more than 75% since the beginning of the year, substantially outperforming gold and most other commodities.

Analysts attribute the price surge to several supportive factors. Global silver mine production has remained relatively flat in recent years while consumption continues to increase, particularly in electronics, solar panel manufacturing, and electric vehicle components. The solar industry alone is projected to consume a record volume of silver this year as renewable energy installations expand worldwide.

At the same time, investment inflows into silver-backed exchange-traded funds and physical bars and coins have accelerated, providing additional upward pressure on prices. The gold-silver ratio, a widely watched indicator, has compressed to its lowest level in over two years, highlighting silver’s stronger relative performance.

Trading volumes in silver futures on major exchanges reached elevated levels on Tuesday as the $60 threshold was breached during European morning hours. The front-month contract on the New York COMEX settled well above the psychological level by the close of the session.

Market participants note that the current deficit in the physical silver market is estimated to exceed 150 million ounces for 2025, following several consecutive years of supply shortfalls. Recycling rates have provided only limited relief, while new mining projects face long development timelines.

The sharp advance has prompted some industrial users to intensify efforts to substitute silver in certain applications or secure longer-term supply contracts. However, silver remains difficult to replace in many high-performance uses, particularly in photovoltaic cells and electrical contacts where conductivity and reliability are critical.

Silver's dual role as both an industrial metal and a monetary asset continues to attract attention from investors seeking exposure to green technology themes as well as traditional safe-haven demand. The metal's affordability relative to gold has also encouraged retail participation during the current rally.

As prices establish a new higher trading range, industry observers expect continued volatility but maintain a constructive outlook for silver in the medium term, supported by structural demand growth from energy transition technologies and persistent constraints on new supply. The $60 per ounce level, once considered a distant target, is now viewed by many market participants as a new foundation for further potential appreciation.