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Silver Tops $80 for First Time Before Sharp Reversal in Whipsaw Trading

Tight supply and pending Chinese export licensing are fueling violent price swings.

Overview

  • Spot prices briefly spiked into the low-to-mid $80s per ounce on Monday, then fell several percent as traders took profits in thin year-end liquidity.
  • Analysts point to multi‑year supply deficits, depleted inventories and elevated physical premiums, with ETF inflows and central‑bank buying amplifying the move.
  • Expectations of further U.S. Federal Reserve rate cuts and a weaker dollar continued to support investor demand for precious metals.
  • China’s new silver export rules take effect on Jan. 1, 2026, requiring government licences and limiting eligible exporters, a shift that could curb global availability.
  • Industrial demand from solar, EVs, electronics and data centres remains robust, and Elon Musk warned the surge could hurt manufacturers who rely on silver inputs.