The value of silver continues to reach new peaks amid a thriving precious metals market, exhibiting a highly volatile, crypto-like trading pattern over the weekend.
Silver achieved an all-time high of nearly $84 on Sunday, with gold demand concurrently pushing prices up to approximately $4,530. Meanwhile, the cryptocurrency market remains sluggish.
As pointed out in a Sunday post by the markets publication The Kobeissi Letter, silver experienced remarkable volatility over the weekend, skyrocketing by 6% before plunging by 10% within the hour.
“Complete madness in silver right now: At 6:20 PM ET, merely 20 minutes post futures opening, silver prices surged to a historic high of $83.75, climbing +6%. By 7:30 PM ET, prices plummeted to a low of $75.15, wiping out -10% of its value in just 70 minutes,” noted The Kobeissi Letter.
Silver moving like BTC
Although precious metals like silver and gold are generally perceived as having more stable values, silver typically demonstrates more volatility.
With the new US Federal Reserve chair scheduled to succeed Jerome Powell in 2026, major interest rate cuts are anticipated under a chair aligned with President Trump’s views and less hawkish policies.
Lower rates signify reduced returns from bond investments, compelling investors to redirect their capital into commodities like gold and silver.
Related: Analysts claim Bitcoin doesn’t require gold and silver to ‘slow down.’
Additionally, demand for silver is supported by its utilization in manufacturing a variety of products, and it plays a role in the “debasement trade,” which reflects a declining long-term confidence in the US dollar resulting from monetary inflation.
Bitcoin still holding steady
While silver and gold are rising partly due to expected rate cuts, Bitcoin (BTC) and the broader crypto market have remained stagnant in December, with BTC down 0.5% over the past month, trading at $90,160 at the time of writing, according to CoinGecko data.
It has been a challenging year overall; despite reaching an all-time high of $120,000 in early October, BTC now requires a 6.5% increase to finish the year positively.
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