In 2025, silver surged by 144% due to investors seeking a hedge against uncertainty and fears of a supply shortage from China’s export restrictions. Silver hit a record high but has since declined by 36%, trading at $77. Could this be a buying opportunity before another potential bullish run towards $200?

China imposed restrictions on silver exports, sparking supply shortage fears and boosting silver’s rally. As the world’s second-largest silver exporter, China aims to protect its domestic supply chains. These restrictions enhance its leverage in trade negotiations and will last until the end of 2027.

Silver is more abundant than gold and mainly used for commercial purposes due to its affordability. Despite physical similarities with gold, silver’s lower cost and reliable supply chain make it a preferred choice in industrial applications. Over half of its annual supply is consumed by electronics and other products.

Silver is more volatile than gold, experiencing significant price fluctuations. It took 31 years for silver to recover after a 1980 peak, and it recently dropped 36% from its all-time high. Uncertainty around China’s export restrictions could lead to further price declines, making a $200 rally unlikely this year.

Read more at Yahoo Finance: Can Silver Reach $200 in 2026? The Answer Might Shock You.