Silver price briefly surpasses $85 per ounce as traders weigh supply and demand dynamics

Silver prices surged significantly and continued their high volatility, following statements from industry institutions that investment buying will be stronger in the coming year while industrial demand will weaken. On Wednesday, silver prices once jumped 6.8%, rising by about one-third from last week's low. A report released by the Silver Institute showed that due to a surge in investment demand outweighing the weakening jewelry demand and reduced silver usage in the solar energy sector, the silver market will experience a supply deficit for the sixth consecutive year. Over the past year, silver prices have fluctuated dramatically, more than doubling driven by investment demand, but the rally halted after the largest single-day drop in history at the end of January. Since then, silver prices have rebounded somewhat, but volatility remains intense.