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Silver surges to record highs in China as Bitcoin stalls during Christmas trading

Written by Brie CarterPublished Dec. 25 2025Last Updated Dec. 25 2025

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Silver prices in China reached record local highs on Christmas Day, underscoring tight physical supply and robust industrial demand.

The move contrasted sharply with subdued trading in digital assets, where Bitcoin showed little price movement amid thin holiday liquidity.

Market analysts said the divergence highlights a broader macroeconomic shift favouring tangible assets during periods of scarcity.

Chinese spot silver prices climbed to unprecedented levels on 25 December, reflecting domestic shortages of physical metal.

Globally, spot silver hovered near recent all-time highs around $72 per ounce, extending gains of more than 120% in 2025.

Gold also posted strong performance this year, rising by approximately 60% as investors sought traditional stores of value.

Bitcoin, by comparison, ended December lower after peaking above $120,000 in October.

Chinese silver markets traded at persistent premiums to London and COMEX benchmarks, signalling localised supply stress.

In several instances, futures contracts briefly entered backwardation, a sign of immediate demand exceeding available supply.

China accounts for more than half of global industrial silver consumption, amplifying the global impact of domestic shortages.

Solar panel manufacturing remained the single largest driver of silver demand throughout the year.

Electric vehicle production also continued to accelerate, increasing consumption of silver in power electronics and charging systems.

Industry data shows electric vehicles require significantly more silver than conventional combustion-engine cars.

Ongoing grid expansion and electronics manufacturing further tightened supply conditions across Asia.

Geopolitical factors added to demand pressures, particularly increased defence spending linked to conflicts in Ukraine and the Middle East.

Silver used in military electronics and munitions is largely non-recoverable, permanently removing supply from the market.

Bitcoin, meanwhile, traded sideways during Christmas, reflecting low participation rather than any material change in fundamentals.

Institutional flows into Bitcoin remained muted during the holiday period.

Analysts noted the absence of safe-haven inflows into Bitcoin despite heightened geopolitical and supply-chain risks.

In late 2025, Bitcoin has increasingly traded like a high-beta liquidity asset rather than a defensive hedge.

During supply-driven shocks, investors have favoured metals over digital alternatives.

The performance gap suggests digital scarcity alone has not been sufficient to attract capital during periods of physical constraint.

Physical scarcity tied to energy systems, defence needs and industrial policy continues to command a premium.

Market strategists said this dynamic could persist into 2026 as structural demand for metals remains elevated.

The contrast between silver and Bitcoin illustrates how macro narratives can override technological adoption themes.

As markets enter the new year, asset performance may hinge more on real-world supply conditions than risk appetite alone.

At the time of reporting, Bitcoin price was $87,071.33.