Editor’s Note
**Editor’s Note:** Silver prices have surged more than 200% over the past year, fueled by industrial demand and geopolitical tensions. As investor appetite for silver bars intensifies, factories in mainland China are working overtime to meet orders, highlighting a significant shift in the precious metals market.
Driven by explosive industrial demand growth and global geopolitical tensions, silver prices have continued to rise, increasing by over 200% in the past year. Yesterday, China Central Television (CCTV) visited a silver product manufacturing factory in Shenzhen. The person in charge stated that demand for investment-grade silver bars has surged rapidly, with the price of a 1-kilogram silver bar skyrocketing by 10,000 yuan (RMB, same below) in just four months, currently reaching 20,000 yuan. Workers have been working overtime for several consecutive months to produce silver bars.
In 2025, both gold and silver prices hit record highs, with silver’s gains far outpacing gold’s. The upward trend for silver has remained strong this year. Sun Tao, general manager of a silver product manufacturing factory in Shenzhen, told CCTV that their factory previously focused on producing silver jewelry. However, in recent months, demand for investment-grade silver bars has continued to rise, while jewelry demand has significantly declined. The factory has adjusted its production accordingly, and silver bar production, once a sideline, has now become its main business. To meet the new demand, the factory has added equipment such as hydraulic presses and rolling mills to expand capacity.
Since this month, customer demand for silver bar specifications has also changed markedly. Sun Tao noted that from October to the end of December last year, most customers ordered 1-kilogram or 500-gram silver bars. However, since this month, the largest specifications ordered are 100-gram and 200-gram bars. The manufacturing process has also improved, and the product range has become much more diverse.
According to Sun Tao, the raw materials for silver products come partly from mines and partly from refining recycled materials. An operator specializing in precious metal recycling told CCTV that the recent rise in silver prices and increased investment demand have led to a sharp surge in orders for refining factories, with processing times becoming increasingly longer.
The sharp rise in silver prices has also brought an unexpected windfall to a woman surnamed Wang in Chengdu, Sichuan. In 2023, she purchased a diamond ring for 6,200 yuan, which now has a recycling value of only about 700 yuan. Meanwhile, a pure silver thermos cup given as a free gift by the merchant at the time now has an estimated recycling value of nearly 2,000 yuan.
It is reported that silver is a key material for solar photovoltaics, electric vehicles, semiconductors, batteries, and touch screens. Industry analysts say that the sustained rise in silver prices is fundamentally driven by a surge in industrial demand and market supply shortages. According to the latest report from the Silver Institute, the rapid development of fields such as photovoltaics, AI, and electric vehicles has triggered explosive growth in global industrial demand for silver. In 2025, industrial demand for silver will account for 60% of total global silver demand, and this growth trend is expected to continue for the next five years.
Additionally, global geopolitical tensions have led many investors to view silver as a safe-haven asset, pushing silver prices higher alongside gold.