Moreover, electric vehicles, AI data centres, 5G infrastructure, and high‑performance electronics all rely on silver’s unmatched electrical conductivity. Unlike other metals, silver’s properties are tricky to substitute. Attempts to replace silver with copper or aluminium have consistently resulted in performance losses. Therefore, this demand remains both sticky and largely price‑insensitive.
On the other hand, silver is also gaining attention in the medical technology field. Its antimicrobial properties are now a standard feature in post-pandemic healthcare systems. From semiconductors to energy storage, silver has become a critical material, not a luxury.
Stealth QE and Liquidity Shifts Drive Silver’s Monetary Revival
The Federal Reserve initiated Reserve Management Purchases (RMPs) on December 12, 2025. This followed an announcement on December 10, signalling its intent to rebuild bank reserves. Initially, the program launched with purchases of $40 billion per month in short-term Treasury bills. This was significantly higher than the Fed’s projected long-term “neutral” pace of $20 billion to $25 billion per month.
While Fed Chair Jerome Powell maintains these are purely “technical” operations to manage liquidity and not a shift in monetary policy, market scepticism remains. In fact, many analysts have interpreted the program as a form of “stealth QE.” This is because it effectively expands the central bank’s balance sheet.
These policies weaken the U.S. dollar and push the US dollar index below the 99 level. In this environment, silver becomes increasingly attractive as a store of value. The RMP program, combined with tightening physical supply and surging industrial demand, amplifies the case for higher silver prices in 2026.
Silver Breakout Confirms Long-Term Bull Cycle
Cup-and-Handle Pattern Unlocks Decades of Price Compression
The long-term outlook for spot silver shows a strong breakout in 2025. The chart below illustrates that the $50 level has acted as a significant resistance since 1980, with silver trading below this zone for over four decades. Attempts to break above $50 in 2011 were unsuccessful, resulting in a prolonged period of consolidation below this level.