LONDON, Dec 29 — Silver surged beyond US$80 (RM325) an ounce to an all-time high, extending a blistering end-year rally driven by speculative trading and a tightening supply-demand balance, Bloomberg reported.

The metal jumped as much as 6 per cent today, briefly touching about US$84 an ounce before swinging sharply lower and then recovering. By midday in Singapore, spot silver was up 1.2 per cent at US$80.24.

A weaker US dollar and rising geopolitical risks have lifted precious metals broadly, pushing gold and platinum to record levels. The Bloomberg Dollar Spot Index fell 0.8 per cent last week, its steepest drop since June, bolstering dollar-priced commodities.

Investor fervour intensified after comments by Elon Musk highlighted silver’s industrial role. 

Responding on X to posts about Chinese export controls, he wrote: “This is not good. Silver is needed in many industrial processes.” 

Analysts note the measures are largely a continuation of policies announced in October, and that China — while a top producer — is also the world’s biggest consumer.

“The speculative atmosphere is very strong,” said Wang Yanqing of China Futures. 

“There’s hype around tight spot supply, and it’s a bit extreme now.”

Silver has gained more than 40 per cent in December and is heading for its best annual performance since records began in 1951. 

The rally has been supported by central-bank buying, ETF inflows and three interest-rate cuts by the US Federal Reserve, with traders betting on more easing in 2026.

“Make no mistake: we are witnessing a generational bubble playing out in silver,” said Tony Sycamore of IG Australia, citing long mine development timelines and a rush of capital into precious metals.

Structural factors set silver apart from gold. 

The market is thinner, inventories are tighter and there is no large pool of lendable bullion to cushion liquidity shocks. 

Stocks in Chinese warehouses linked to the Shanghai Futures Exchange fell in November to their lowest since 2015, while much available metal remains in New York as traders await the outcome of a US review into critical-mineral imports.

Silver’s industrial demand — from solar panels to data centres and electronics — adds to the strain. 

With inventories near record lows, buyers are paying a premium for immediate delivery. Technical indicators, however, point to froth: the 14-day relative strength index is near 80, well above overbought territory.