During the Asian trading session on December 1, the spot price of silver in London hit a new all-time high, breaking through $57 per ounce for the first time. As of 10:00 AM Beijing time, London spot silver was trading at $57.7 per ounce, up approximately 2.3%. Since the beginning of this year, international silver prices have surged over 90%, significantly outperforming gold.

Analysts pointed out that rising expectations of a Federal Reserve rate cut have provided strong support for silver and the broader precious metals market. According to the latest data from the CME FedWatch Tool, the market is pricing in an 87.4% probability of a 25-basis-point rate cut by the Fed in December. Additionally, the emergence of a dovish candidate, Hassett, as a frontrunner for the next Fed chair has further bolstered confidence in a prolonged low-interest-rate environment.

On the supply-demand front, silver production has declined in recent years, leading to a persistent supply deficit. Global exchange silver inventories have dropped to their lowest levels in nearly a decade, while industrial demand from sectors like photovoltaics and electric vehicles continues to grow, exacerbating tightness in the spot market. In the leasing market, short-term silver lease rates have skyrocketed, highlighting the scarcity of silver supply. Some analysts note that the current gold-to-silver price ratio stands at approximately 75:1, significantly higher than the 20-year average of around 60:1, suggesting that silver remains undervalued relative to gold in the precious metals sector. Bank of America recently raised its 2026 silver price target to $65 per ounce.