According to Google Trends data, the keyword "Cryptocurrency" has a popularity index of only 16, far lower than the peak of 100 when Bitcoin surged to $120,000 in August this year, indicating a significant cooling in discussion volume; the current Fear & Greed Index is around 28, and the market is shrouded in a persistent atmosphere of "fear".
On the other hand, silver has become the focus of market attention. Google Trends shows that the search index for the keywords "silver price" and "silver" has reached a record high. The spot silver price has jumped from about $28 at the beginning of the year to break through $79 this week, with an annual increase of 170%, and is expected to create the first record of eight consecutive months of gains since 1980.
Supply and demand gap and inventory shortage
The main reasons for silver's strong rise this year include several factors: First, the global supply-demand imbalance continues to widen, with the silver deficit projected to exceed 200 million ounces by 2025, and inventories remaining tight. Second, industrial demand has exploded, with significant increases in silver usage in fields such as photovoltaic solar energy, electric vehicles, AI data centers, and semiconductors.
Furthermore, expectations of a US Federal Reserve interest rate cut, geopolitical tensions, a weakening dollar, and silver's inclusion on the US critical mineral list have all attracted significant inflows of investment and safe-haven funds. On the other hand, supply-side expansion has also been hampered. Major mining countries have faced limited production growth in recent years due to insufficient capital expenditure and stricter environmental approvals.
Looking ahead to 2026, unless miners successfully expand production significantly or recycling systems rapidly ramp up production, the market generally expects silver to remain in a range of "high volatility and high premiums".
However, the risks should not be ignored. Technical indicators show that the daily RSI for silver has been above 70 for a long time, suggesting short-term overheating; if the global manufacturing recovery falls short of expectations, or the US dollar unexpectedly strengthens, the price may retest the psychological support level of $70.
