If you think you have missed the silver price rally, think again.
On Dec. 27, silver surged 10.21% overnight, reaching a new all-time high of $79.25.
The metal’s rally was fueled by surging consumption from solar panels, electric vehicles (EVs), AI hardware, and its looming shortage.
While there is widespread FOMO, many are turning toward on-chain tokenization as the next best option to gain exposure to silver, without ever taking delivery of a single bar.
Tokenization allows real-world assets such as commodities, real estate, and funds to be represented as digital tokens on blockchain networks. This enables 24/7 trading, instant settlement, and global access.
For silver, this means investors can buy exposure to the metal without the storage, insurance, or logistics that come with holding it physically.
Related: 'Rich Dad Poor Dad' author says silver will outperform Bitcoin
Physical silver markets signal supply strain
The physical silver market is showing clear signs of supply strain, with delivery delays, widening bullion premiums, and inventories at multi-year lows.
Naturally, in the past year, silver prices have gone up by 173.72%. Comparatively, the price of gold per ounce has increased only 73.97% in the same time frame.
Global silver production hovers around 1 billion ounces, yet analysts expect a 115–120 million-ounce deficit this year, the fifth straight annual shortfall, as mine output struggles to meet rising demand.
On top of it, China, which accounts for 60%–70% of global silver output, also announced plans to impose new export controls on silver from Jan. 1, 2026.
Under the new law, silver shipments would require government licenses and only state-approved producers with at least 80 tonnes of annual output and $30 million in credit lines will qualify. The move would sideline smaller exporters and threaten to curb international supply overnight.
Several posts and market reports suggest that China and the UAE are aggressively upselling silver amid a supply shock, with retail prices reportedly ranging between $86 and $100 per ounce at local shops.
More News:
Tokenized silver paves the way
Amid supply constraints and price jumps in physical silver, interest in on-chain tokenized silver is accelerating.
iShares Silver Trust(NYSEARCA: SLV) by BlackRock is one of the world’s largest and most widely traded silver-backed exchange-traded funds (ETFs).
Its tokenized version provided by Ondo Finance, with ticker SLVon allows non-U.S. investors to mint, redeem, and transfer silver exposure seamlessly, bypassing traditional brokerage infrastructure altogether. Each token represents fractional ownership of silver held by trusted custodians.
Related: What are tokenized stocks? Explained
Data from RWA.xyz shows that tokenized SLV saw a:
-
1,200%jump in monthly on-chain transfer volume
-
300%rise in the number of holders
-
40%increase in net asset value (NAV) over the past 30 days.
Meanwhile, the abrdn Physical Silver Shares ETF by U.K.-based abrdn plc. also recorded a 39.01%NAV increase and a 20%rise in holders.
Tokenized silver prices did see a brief pullback recently. At press time on Dec. 29, SLV was down 9.39% in the past 24 hours after a 22.82% monthly climb.
However, the broader trend points to growing demand for digital access to precious metals.
Disclaimer: The information provided here is for general informational purposes only and should not be considered financial advice. Consult with a licensed financial advisor before making any investment or financial decisions.
Related: Elon Musk sends brutal words on silver price surge
This story was originally published by TheStreet on Dec 29, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
