Silver Hits Record Prices in China as Bitcoin Stalls on Christmas
Silver markets despatched a transparent sign on Christmas Day. While Bitcoin traded quietly in skinny vacation liquidity, silver costs in China surged to file native ranges, pushed by tight bodily provide and robust industrial demand.
The divergence highlights a rising macro theme. During intervals of shortage and geopolitical stress, capital is flowing towards onerous belongings quite than digital alternate options.
China’s Physical Silver Tightness Drives the Move
The newest silver transfer originated in China, the place native costs reached file ranges on December 25. Evidently, China is dealing with a scarcity of bodily silver.
Globally, spot silver hovered near recent all-time highs round $72 per ounce, extending a rally that has pushed costs up greater than 120% in 2025.
Gold also posted strong gains this year, rising roughly 60%, whereas Bitcoin ended December decrease after peaking above $120,000 in October.
Chinese spot and futures markets have traded at persistent premiums to London and COMEX benchmarks.
In some instances, contracts briefly moved into backwardation, an indication of instant provide stress. China accounts for greater than half of worldwide industrial silver demand, making native shortages a worldwide concern.
The stress comes from a number of sources. Solar manufacturing stays the most important driver, whereas electrical automobile manufacturing continues to rise.
Each EV makes use of considerably extra silver than a standard automobile, notably in energy electronics and charging infrastructure.
At the identical time, grid growth and electronics manufacturing have stored demand elevated.
Bitcoin’s Christmas Stagnation Tells a Different Story
Bitcoin, in contrast, confirmed little response on Christmas Day. Prices moved sideways amid low quantity, reflecting diminished institutional participation quite than a shift in fundamentals.
However, the lack of defensive inflows stands out.
In late 2025, Bitcoin has traded extra like a high-beta liquidity asset than a disaster hedge. When bodily shortage and supply-chain stress dominate the narrative, traders have favored metals over digital belongings.
Geopolitical dangers reinforce that development. Rising protection spending linked to conflicts in Ukraine and the Middle East has elevated demand for silver in army electronics and munitions.
Unlike funding silver, a lot of this metallic is completely consumed.
The divergence between silver and Bitcoin displays a broader macro level. Digital shortage alone has not been sufficient to draw capital throughout supply-driven shocks.
Physical shortage, particularly when tied to vitality, protection, and industrial coverage, continues to matter.
As markets head into 2026, that distinction could form asset efficiency greater than narratives round threat urge for food alone.
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