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The price of silver (TVC: $SILVER ) has reached another record high and risen above $60 U.S. per ounce for the first time.

Silver has now gained more than 75% this year, surpassing the 60% increase in gold bullion.

The sharp rise in silver's price comes amid a global supply squeeze and rising demand. Silver is both an industrial and precious metal, used in electronic devices and to make jewellery.

The spot price of silver rose 4% on Dec. 9 to reach $60.82 U.S. per ounce, an all-time high.

Commodities analysts say that silver's price is also getting a boost with the U.S. Federal Reserve expected to lower interest rates by 25-basis points on Dec. 10.

Lower interest rates reduce the opportunity cost of owning a non-yielding asset such as silver.

Silver and gold have also benefitted from a weaker U.S. dollar. So far in 2025, the U.S. dollar has declined 8.5%, including a 0.5% decrease over the past month.

Despite silver's record run, some analysts on Wall Street warn that gold might be the safer investment.

Goldman Sachs (NYSE: $GS ) wrote in a recent note to clients that it expects silver to experience "more volatility and downside price risk," while gold is a more practical long-term investment.

Still, metals such as silver and gold have been boosted in recent months due to heightened economic and policy uncertainty around the world, notably in the United States.