Silver Prices Slip Slightly Following Record Breaking Rally

Profit Taking and Technical Correction

Silver's spot price has eased from the $66.68 mark reached mid-week, currently hovering around $65.76. This minor decline is largely attributed to profit-taking by short-term investors who participated in the recent explosive rally. Despite the dip, silver has outperformed most assets over the last year, posting a 122% gain since late 2024. Traders are now watching the $65 support level closely to see if the bullish momentum can be sustained into the new year.

Industrial and Investment Divergence

The fundamental story for silver remains split between its role as an industrial powerhouse and a monetary hedge. While industrial demand for electronics and solar components remains robust, the recent price spike has led some industrial users to pause procurement. Meanwhile, investment demand through silver ETFs continues to be a volatile factor. Long-term bulls argue that the structural deficit in silver production will eventually push prices back toward recent highs once the current sell-off concludes.