Silver Price Rockets to $100 in China as Retailers Embrace Tokenized Exposure
By Pooja Rajkumari | December 29, 2025
Silver prices have experienced a dramatic surge in China, with local retail prices reportedly reaching as high as $100 per ounce amid soaring demand and tightening supply. This remarkable price spike reflects a broader global trend driven by burgeoning consumption in sectors like solar energy, electric vehicles (EVs), and artificial intelligence (AI) hardware, alongside physical market supply constraints and new regulatory developments.
A New Record High for Silver
On December 27, silver prices jumped 10.21% overnight to hit an all-time high of $79.25 per ounce on global markets. This rally has been propelled by increasing industrial demand coupled with concerns over an ongoing shortage of physical silver. Over the past year, silver prices have catapulted by 173.72%, far outpacing gold’s 73.97% rise in the same timeframe. Analysts attribute this to tightening inventories, surging consumption for emerging technologies, and looming supply deficits.
Supply Strains and Chinese Export Controls
The physical silver market is signaling clear strain: deliveries are delayed, bullion premiums are widening, and inventories have dwindled to multi-year lows. Global silver production stands at roughly 1 billion ounces annually, yet this year is expected to face a deficit of approximately 115 to 120 million ounces, marking the fifth consecutive yearly shortfall.
Compounding supply issues, China—responsible for 60% to 70% of global silver output—has announced new export controls effective January 1, 2026. The new regulations mandate government licenses for silver shipments and restrict exports to state-approved producers meeting stringent production and financial criteria. This move is set to sideline smaller exporters and potentially curtail international silver supply almost overnight.
Retailers Respond: Silver Pricing Surges in China and UAE
In response to this evolving landscape, market observers have noted accelerated silver sales and price increases at local retailers in China and the UAE, with prices climbing between $86 and $100 per ounce. This phenomenon indicates a rapidly developing supply shock pushing retail prices beyond global benchmarks.
Tokenized Silver: The Next Frontier for Investors
As physical silver becomes scarcer and more costly to hold, investors are increasingly gravitating toward digital alternatives, especially through on-chain tokenization of silver assets. Tokenization refers to the representation of real-world assets such as commodities as digital tokens on blockchain networks, enabling 24/7 trading, instant settlement, and accessibility from anywhere in the world.
For silver investors, tokenization offers a way to gain exposure without physically storing, insuring, or managing logistics of metal bars. One prominent example is the tokenized version of the iShares Silver Trust (NYSEARCA: SLV), facilitated by Ondo Finance under the ticker SLVon. This token enables global investors, especially non-U.S. holders, to mint, redeem, and transfer fractional silver ownership seamlessly without traditional brokerage hurdles.
Data analytics platform RWA.xyz reports impressive growth in the tokenized silver space: SLV tokens experienced a 1,200% increase in monthly on-chain transfer volumes, a 300% rise in holders, and a 40% net asset value (NAV) increase in the past 30 days. The U.K.-based abrdn Physical Silver Shares ETF also saw a 39.01% NAV increase and a 20% rise in holders recently.
Although tokenized silver prices experienced a slight pullback—with SLV down 9.39% in the past 24 hours as of December 29 after a robust 22.82% monthly gain—the broader trend points to growing investor appetite for digital access to precious metals amid traditional market constraints.
The Future Outlook
With tightening physical supplies, emergent export restrictions, and rapid technological-driven demand, silver is positioned for continued volatility and potential further price appreciation. The rise of tokenization offers an innovative route for investors to gain involvement without the burdens of physical asset management.
Investors considering silver exposure are encouraged to carefully evaluate their options and consult financial advisors, keeping in mind the complex interplay of industrial demand, regulatory changes, and emerging digital investment vehicles shaping the silver market landscape.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial professional before making investment decisions.
About the Author
Pooja Rajkumari is Senior Reporter at TheStreet Crypto, specializing in finance, cryptocurrency, and emerging technologies. Previously, she worked at Benzinga and focuses on AI-driven editorial tools and market analysis. For tips and story ideas, contact [email protected].
Reviewed by
Mehab Qureshi, Senior Editor at TheStreet with extensive experience covering crypto regulation, tokenization, and Wall Street’s digital asset adoption.
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