Silver Rises Over 120% YTD 
Daily News Nuggets | Today’s top stories for gold and silver investors
December 11th, 2025
Fed Delivers Third Rate Cut of 2025, Signals Caution Ahead
The Federal Reserve cut interest rates by 25 basis points Wednesday, dropping the benchmark rate to 3.5-3.75% — the third straight cut since September. But this decision exposed deep cracks in the committee. Three policymakers dissented: two opposed any cut, while one demanded a 50-point reduction.
Chair Jerome Powell called it a “challenging situation.” The Fed is walking a tightrope—supporting a weakening labor market without reigniting inflation, which remains stubbornly above the 2% target thanks largely to tariff-driven price increases. The central bank’s latest forecasts project just one more cut in 2026, signaling that further easing is far from certain.
This murky path ahead matters for precious metals. Gold and silver typically rally when real rates fall and economic uncertainty climbs. If the Fed hits pause while inflation stays elevated, both metals could find continued support from nervous investors seeking shelter.
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Silver Smashes Record High After Fed Decision
Silver exploded to an all-time high of $62.89 per ounce following Wednesday’s rate cut. The white metal is now up over 113% in 2025 — its best year since 1979 — crushing gold’s still-impressive 59% gain.
Three forces are driving the surge. First, a severe supply squeeze that started in October continues to pinch global markets. Second, industrial demand from solar panels and electric vehicles keeps climbing. Third, the U.S. government designated silver a critical mineral, adding strategic importance to the metal.
While some silver has flowed into London vaults to ease the shortage, borrowing costs remain unusually high — a sign the squeeze isn’t over. Meanwhile, Chinese inventories have dropped to decade lows. Lower interest rates sweeten the deal for non-yielding assets like silver, and speculators are treating the smaller, more volatile market as a “levered play” on precious metals.
But rate cuts weren’t the only tool the Fed deployed this week.
Fed Resumes Treasury Purchases to Support Markets
The Federal Reserve will restart buying Treasury securities — $40 billion this Friday, with elevated purchases expected through early 2026. After pausing its balance sheet runoff in October, the central bank is now actively expanding again.
Some analysts call this a “stealth” easing move. When the Fed buys Treasuries, it drives up bond prices and pushes rates lower without officially cutting the benchmark rate. The goal is maintaining “ample reserves” in the banking system during uncertain times.
For gold and silver, this matters. Expanding the Fed’s balance sheet pumps liquidity into financial markets, which tends to weaken the dollar and lift precious metals. If purchases stay elevated into next year, it could provide steady tailwinds for both.
Of course, all this monetary maneuvering may look very different come May.
Why the Next Fed Chair Could Change Everything
Jerome Powell’s term ends in May 2026, and the race to replace him is heating up. The front-runner? Kevin Hassett, Trump’s National Economic Council Director, with prediction markets giving him an 86% shot at the job.
Hassett has made his position clear: he’d be “cutting rates right now” if he held Powell’s job. That aligns perfectly with President Trump’s demands for much lower rates—potentially as low as 1%. But it’s also raising red flags about Fed independence, especially after Trump said aggressive rate cutting would be a litmus test for his pick.
If Hassett takes over, expect a markedly different Fed—one focused on growth and cheap credit over inflation concerns. For gold and silver investors, that could mean sustained support from easier policy and falling real yields, both historically bullish catalysts.
Whoever takes the helm will inherit a challenge that goes far beyond interest rates.
U.S. National Debt Crosses $38 Trillion
The U.S. national debt blew past $38 trillion in October — the fastest trillion-dollar increase outside the pandemic era. The milestone hit during a government shutdown, highlighting just how dire the fiscal picture has become.
Here’s the scale: $112,000 in debt per American. Nearly $285,000 per household. The total equals the combined economies of China, India, Japan, Germany, and the UK. Interest payments alone are closing in on $1 trillion annually, surpassing both Medicare and defense spending.
This isn’t just a budget problem—it hits households directly through higher borrowing costs, stagnant wages, and eroding purchasing power as inflation compounds. For investors, this is why gold has stayed near record highs despite skeptics calling it overvalued. When debt spirals and currency concerns mount, gold’s 5,000-year track record as a store of value looks increasingly relevant.
