|

Silver prices surge sharply at the end of 2025 – Société Générale

Silver prices have surged sharply in 2025, up almost 150% and most industry analysts argue for fundamentally justified reasons, Société Générale's analysts note.

Holiday volatility amplifies price swings

"We expected the holiday period to experience bouts of extreme volatility given the lower liquidity, but prices were expected to rise over the holiday period. Specifically, in our previous CCA, we forecasted a 7% increase in Silver prices before and after the 2026 New Year. So far, over this period, prices are currently up 14.5% despite a significant one-day pullback on Monday of this week."

"Silver prices did take a significant downward presumably because of another increase in margin levels at the CME during a very illiquid time of year, and positions being adjusted, with initial margins jumping $3,000/oz from $22,000/oz to $25,000/oz. This followed an increase on Dec 12th, 2025, with a 10% increase in margins to the $22,000/oz level."

"Silver looks expensive when viewed linearly; when viewed in logarithmic terms, it tells the same compounding story that’s been running, in Silver’s case, in the last 25 years but this year’s increase does look exceptional, even in logarithmic form."

(This story was corrected on December 30 at 08:35 GMT to say Silver prices surge sharply at the end of 2025 instead of Silver extends historic rally into 2025)

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

GBP/USD retreats further, clinches three-day lows

The British Pound comes under extra selling pressure at the beginning of the week, dragging GBP/USD to fresh three-day troughs near 1.3350. Cable’s steady drop follows the improved tone in the Greenback as effervescence in the Middle East remains everything but abated.

EUR/USD remains offered below 1.1400

EUR/USD builds on Friday’s pullback and revisits the 1.1380 region, or multi-day lows, in quite a negative start to the week. The pair’s extra losses come in response to the marked bounce in the US Dollar, supported at the same time by unabated tensions in the Middle East. In the meantime, investors continue to gear up for the upcoming US CPI data and the semiannual testimony by Chair Warsh.

Gold struggles below $4,000 as Iran risks benefit USD ahead of the US CPI and Fed's Warsh

Gold hits a nearly two-week low, around $3,982, during the Asian session on Tuesday and seems vulnerable as escalating US-Iran tensions continue to benefit the safe-haven US Dollar. Moreover, the closure of the Strait of Hormuz lifts Crude Oil prices higher, reigniting inflation fears and bolstering Fed hike bets. This further underpins the buck as traders look to the US CPI report and Fed Chair Kevin Warsh's testimony before placing fresh directional bets on the non-yielding bullion.

Bitcoin holds near $62K ahead of key macroeconomic reports

Bitcoin traded near $62,000 on Monday, holding onto recent gains as investors adopted little conviction ahead of key macroeconomic reports this week. In a report on Monday, QCP analysts highlighted that Tuesday's US Consumer Price Index data could be the first major catalyst to decide the market's direction.

The week ahead: Geopolitical risks rise, Warsh speaks to congress and earnings season gathers pace

It’s a shaky start to the week for financial markets. The oil price has risen by nearly 4% and Brent crude is trading above $79 per barrel. This comes after more attacks between the US and Iran in the Gulf, and statements from the Iranian regime that it has closed the Strait of Hormuz.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.