Silver slips 8% from record high amid thin volumes, best year since 1979 in sight: Report

The sizzling rally in silver prices is being driven by a combination of speculative inflows, supply deficits and strong industrial demand.

• Silver prices dropped sharply, ending a six-day rally streak after record highs.
• Silver is up 180 percent in 2025, nearing its best annual gain since 1979
• Platinum rose over 40% in December, reaching record highs above $2,500/ounce.

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Silver prices in global markets retreated sharply after touching fresh intraday records, snapping what could have been a seventh consecutive day of gains, a CNBC-TV18 report said on Monday. The metal slipped as much as 8% from its peak after an aggressive rally earlier in the session.

March silver futures surged to an intraday high of $82.67 an ounce in early trade, marking a further 7% rise on top of an 11% jump on Friday, which was the strongest single-day gain since 2008, CNBC-TV18 noted. At those levels, prices were extending a rally that has eclipsed even the historic short squeeze seen in October.

However, the sharp moves are being amplified by thin trading conditions during the holiday period, CNBC-TV18 said. Market volumes remain subdued, which has exaggerated price swings on both sides.

At their peak, silver prices are up about 180% so far in 2025, with three trading sessions still remaining in the year, putting the metal on track for its best annual performance since 1979, when gains exceeded 200%, as highlighted by CNBC-TV18.

The rally is being driven by a combination of speculative inflows, supply deficits and strong industrial demand. Analysts told CNBC-TV18 that paper trading positions are increasingly being backed by physical demand, while available supply remains insufficient to meet that requirement.

Tight supply conditions are also supporting platinum prices. CNBC-TV18 reported that platinum has risen more than 40% in December alone, with January futures crossing the $2,500-an-ounce mark in early trade - the highest level since records began in 1987.

Gold, by contrast, has seen relatively muted price action. While largely unchanged on the day, the yellow metal continues to trade above $4,550 an ounce, CNBC-TV18 said.