As we mark the close of a tumultuous 2025, one asset class stands out not just for its resilience, but for its outright defiance of economic headwinds: silver. On December 10, 2025, spot silver traded at a staggering CA$84.25 per troy ounce—a 93% year-to-date increase from its January open of CA$43.60. This isn’t a fleeting bubble; it’s the culmination of structural imbalances, insatiable industrial hunger, and a retail investor awakening that’s finally piercing the veil of market manipulation. For the discerning Canadian investor, silver represents not merely a hedge against inflation or geopolitical unrest, but a high-conviction opportunity in an undervalued asset screaming for revaluation.
In this analysis, we’ll dissect the drivers behind silver’s skyrocketing trajectory, grounded in hard statistics from the Silver Institute’s World Silver Survey 2025 and other authoritative sources. We’ll explore industrial usage, which devours over half of global supply; the surge in public demand that’s overwhelming paper markets; and the notorious price suppression tactics of the London Bullion Market Association (LBMA) and COMEX futures. Above all, we’ll emphasize silver’s extreme undervaluation relative to gold, using clear visualizations to empower you—the everyday investor—to make informed purchase decisions. All prices herein are denominated in Canadian dollars (CAD) for relevance to our domestic audience, assuming a current USD/CAD exchange rate of 1.37.
A Historic Rally: Silver’s Breakout from Decades of Dormancy
Silver’s 2025 performance has been nothing short of meteoric. From a sleepy CA$23.50 average in 2020 amid pandemic lows, the metal has compounded at an annualized rate of 29% through December, outpacing gold’s 28% CAGR over the same period. This surge accelerated in Q3, with prices leaping 57% year-to-date by September alone, fueled by U.S. Federal Reserve rate cut expectations and escalating global supply chain tensions.
To visualize this trajectory, consider the following chart tracking silver’s annual average spot price in CAD from 2020 to 2025. Note the sharp inflection in 2024-2025, where deficits and demand collided.
This chart underscores a pivotal shift: silver has broken free from its post-2011 stagnation, where prices languished below CA$40 for over a decade. Today, at CA$84.25, it’s still 25% below its inflation-adjusted 1980 peak of CA$105 equivalent— a glaring undervaluation for a metal with dual monetary and industrial roles. For investors eyeing entry points, dips below CA$80 could signal tactical buys, with resistance at CA$90 beckoning as a near-term target.
Industrial Juggernaut: The Green Tech Engine Devouring Silver Supply
Silver’s true superpower lies in its irreplaceable role across industries, accounting for 54% of total demand in 2024—a record 680.5 million ounces (Moz), up 4% year-over-year. Fast-forward to 2025: despite a projected 2% dip in overall industrial uptake to 666 Moz amid economic softening, key sectors like photovoltaics (solar panels) and electronics are exploding, offsetting declines elsewhere. The Silver Institute forecasts solar alone will consume 200 Moz in 2025, a 15% jump from 2024, driven by global net-zero pledges and subsidies under Canada’s Critical Minerals Strategy.
Break it down: Electrical and electronics demand hit 287 Moz in 2024 (42% of industrial total), while automotive (EVs and hybrids) added 88 Moz, up 12% on electrification trends. In Brazil, a bellwether for emerging markets, silver use in solar surged 22% to 12 Moz. East Asia, the manufacturing epicenter, saw industrial fabrication rise 4% to 401.7 Moz in 2024, with projections holding steady into 2025 despite trade frictions.
This isn’t hype—it’s physics. Silver’s unmatched conductivity (best among metals) and reflectivity make it essential for 5G infrastructure, where demand could double to 50 Moz by 2030. Medical applications, including antimicrobial coatings, added another 65 Moz in 2024, bolstered by post-pandemic hygiene focus.
The pie chart below illustrates 2025’s projected industrial demand split, highlighting solar and electronics as the heavyweights. For purchase decisions, note how these sectors correlate with price spikes: a 10% solar growth historically lifts spot by 5-7%.
With mine production flat at 830 Moz annually—hamstrung by underinvestment and ESG hurdles—the market faces a fifth straight deficit of 95 Moz in 2025, widening the cumulative gap to 820 Moz over five years. Recycling covers just 180 Moz, leaving industrial users scrambling. For Canadian investors, this spells premium on physical bars or ETFs like Sprott Physical Silver Trust (PSLV.TO), trading at a 2% discount to NAV—ideal for stacking ahead of Q1 2026 shortages.
Public Demand Awakens: Retail Investors Flood the Market
While industries quietly hoover up supply, the public is storming the gates. Physical investment demand—coins, bars, and ETFs—surged 25% year-to-date in 2025, reaching 280 Moz, per Metals Focus data. This mirrors gold’s retail boom but amplifies it: silver’s affordability (CA$84 vs. gold’s CA$5,754 per ounce) draws first-time buyers, with Canadian retail sales up 18% via platforms like Kitco and TD Precious Metals.
Jewelry and silverware, traditional public staples, added 210 Moz in 2024 (down 3% but stabilizing in 2025 on wedding booms in India and China). Yet the real fireworks are in Western markets: U.S. Mint American Silver Eagle sales hit 5.2 million ounces by November 2025, a 40% YoY spike, while Europe’s physical bar demand rose 15% amid eurozone inflation fears. In Canada, the Royal Canadian Mint reported a 22% uptick in Maple Leaf silver coin shipments, totaling 1.8 million ounces YTD.
This frenzy exacerbates deficits: total demand is forecast at 1.12 Boz for 2025, down 4% from 2024’s 1.16 Boz, but still outstripping supply by 95 Moz. Retailers like AU Bullion in Toronto are rationing stock, with wait times stretching to two weeks for 1,000-oz lots. For investors, this signals urgency: allocate 5-10% of portfolios to silver now, targeting CA$75-80 entry zones for 20-30% upside by mid-2026.
The Elephant in the Vault: LBMA and COMEX Manipulation Exposed
No discussion of silver’s undervaluation is complete without confronting the paper tigers: the LBMA and COMEX, where futures contracts outnumber physical delivery 250:1. For years, bullion banks like JPMorgan have been accused of “spoofing”—flooding orders to crash prices—suppressing silver below fair value. In 2025, the cracks widened dramatically.
October’s “India Squeeze” saw a 1,000-tonne physical order freeze LBMA vaults, spiking lease rates to 5% and premiums over COMEX futures to US$2.50/oz (CA$3.43)—unheard of in a market where spreads are pennies. COMEX open interest plummeted 22% from August peaks, as shorts covered amid a CME outage in November that halted trading for hours, sending prices parabolic to CA$84.
Regulators are circling: CFTC probes into JPMorgan’s 2025 trades echo 2020 fines, but physical tightness is forcing transparency. Backwardation—spot prices exceeding futures—hit records in Q4, signaling a short squeeze that could propel silver to CA$100+ if unaddressed. The bar chart below contrasts physical vs. paper volumes on COMEX, illustrating the manipulation’s scale. Investors: Avoid futures; opt for allocated storage to sidestep counterparty risk.
Silver’s Undervaluation: The Gold Ratio Tells All
Gold, the monetary safe haven, has rallied 44% YTD to CA$5,754/oz, but silver’s outperformance shines in the gold-silver ratio, now at 68:1—near 2025 lows and half its 2020 peak of 125:1. Historically averaging 60:1, this divergence screams undervaluation: silver should trade at CA$96/oz if normalized.
The line chart below tracks the ratio alongside silver prices. A break below 65:1 could trigger a 15% silver pop, per historical precedents like 2011. For decisions: If ratio >70, overweight silver; below 60, trim for gold rotation.
Silver’s industrial wildcard amplifies this: while gold is 90% investment-driven, silver’s 54% industrial tie-in leverages green transitions gold can’t touch. At current ratios, a CA$1,000 gold move implies CA$15-20 for silver—translating to 18-24% returns.
Strategic Allocation: Empowering Your Portfolio
For the public investor, silver’s confluence of factors demands action. Target 3-7% allocation via physical (Royal Canadian Mint products at CA$86/oz premium) or low-fee ETFs (e.g., SLVR.TO). Use the charts as sentinels: Buy on industrial dips (ratio >75), hold through manipulation noise, sell rallies above CA$100.
Risks? Short-term volatility from Fed hikes or China slowdowns could test CA$75 support. Yet with deficits entrenched and manipulation waning, the upside skews massively positive. Silver isn’t just skyrocketing—it’s stratospheric. Position now, and let fundamentals do the heavy lifting.
For informational purposes; consult a financial advisor. Data as of December 10, 2025.
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