Xin Lang Cai Jing·2025-12-24 05:45Core Viewpoint - The price of spot silver has reached a new historical high of $72 per ounce, marking an increase of over 45% in the past month, highlighting its volatility and strong market interest compared to gold [1][11]. Market Dynamics - Silver has shown greater volatility and elasticity compared to gold, with significant price increases following a brief correction in mid-November [3][13]. - The global supply of mined silver is expected to remain stable at 813 million ounces in 2025, as increases in North American and Russian production are offset by declines in South America, Australia, and Indonesia [3][13]. - Major markets like London, New York, and Shanghai are experiencing low inventory levels, which, combined with a supply-demand gap, enhances the price elasticity of silver [3][13]. Demand Factors - The demand for silver, particularly in photovoltaic applications, remains substantial, contributing to a continuous supply gap. Other significant demand sources include physical investment, jewelry, and electronics [3][13][4]. - If photovoltaic alternatives do not materialize by 2026, the supply gap is likely to persist [4][13]. Stock Performance - In the A-share market, 11 silver-related stocks have seen their prices double within the year, with notable performers including Xingye Yinxin (up 218%) and Zijin Mining (up over 100%) [5][16]. - A detailed performance table shows significant year-to-date increases for various silver-related stocks, indicating strong market sentiment and investment interest [6][17]. Fund Activity - The Guotou Silver LOF fund has experienced a surge, with a premium exceeding 50% and a doubling of returns over the past month, attracting attention from retail investors [7][19]. - Following a temporary suspension due to high trading activity, the fund resumed trading with a significant price increase, reflecting heightened investor interest and market volatility [19][20].