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    Silver price soars past $60: cost and capex implications for mine planners

    December 9, 2025|

    Reviewed by Joe Ashwell

    Silver price soars past $60: cost and capex implications for mine planners

    First reported on MINING.com

    30 Second Briefing

    Silver prices jumped 3.6% on Tuesday to a record $60.46/oz, extending a two‑month rally that has doubled the metal’s value this year and outpaced gold’s 60% gain. The move is driven by a lingering supply squeeze following an October London market crunch, with Chinese inventories at their lowest in a decade and thin holiday liquidity in London’s OTC trade amplifying volatility. Traders are also pricing in a near‑certain 25 bp US Federal Reserve rate cut, boosting safe‑haven demand and complicating cost forecasts for silver‑exposed projects.

    Technical Brief

    • Spot silver moved intraday by 3.6% on Tuesday, indicating very high short-term price volatility.
    • A “historic squeeze” in London in October triggered the current supply‑side tightness in the market.
    • Chinese silver inventories are now at their lowest level in roughly 10 years, constraining physical availability.
    • A chaotic trading halt on the Comex exchange in late November temporarily removed liquidity from futures markets.
    • Low physical dealing in London’s over‑the‑counter market during the holiday period has magnified price swings.
    • Market participants are treating silver as a safe‑haven proxy, trading it in tandem with gold ahead of Fed decisions.
    • Trevor Yates of Global X ETFs notes traders are pricing in near‑certainty of a 25 bp US rate cut.

    Our Take

    With silver having doubled this year while gold is up 60%, the metal’s higher beta suggests that primary silver projects in Canada and the USA could move up the development queue faster than gold-only assets in our database, especially where by-product credits improve project economics.

    The $53 billion Anglo American–Teck merger value underscores how diversified majors are leaning into large-scale base and precious metals portfolios; sustained silver above $60/oz would likely strengthen the case for Teck’s existing polymetallic deposits with silver credits inside the combined group.

    In our coverage of 224 Mining stories, only a subset of the 82 silver- and gold-linked pieces involve M&A, so the combination of a record silver price and a mega-deal reference point here signals a market backdrop that could support more consolidation plays similar to the Contango Ore–Dolly Varden Silver transaction noted in the related articles.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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