Silver Rises Over 120% YTD 
Daily News Nuggets | Today’s top stories for gold and silver investors
December 18th, 2025
Inflation Cools More Than Expected in November
Consumer prices rose 2.7% year-over-year in November, coming in below the 3.1% economists had forecast and up only slightly from October’s 2.6%. Core inflation (excluding food and energy) also surprised to the downside at 2.6% versus expectations of 3.0%. The softer-than-expected reading came after a government shutdown disrupted October data collection, leaving markets without a clean monthly comparison.
Housing costs remain the sticky component, accounting for nearly 40% of November’s increase, though the pace of shelter inflation is showing signs of cooling. Markets reacted positively, with futures rallying on expectations that the Fed will proceed with another quarter-point cut at next week’s meeting.
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Economists Raise Red Flags Over November’s Inflation Data
While November’s 2.7% inflation reading looks encouraging, economists are urging caution—some saying it’s “hard to take this data seriously.” The government shutdown disrupted data collection throughout October and into mid-November, forcing the Bureau of Labor Statistics to rely on statistical assumptions that may have distorted the numbers.
Housing costs—which make up a third of the index—showed suspiciously low inflation, with Harvard economist Jason Furman noting the BLS likely made “a big judgment error” by effectively assuming zero inflation in October. Other oddities: seasonally adjusted gas prices rose even though actual prices fell, and daycare costs suddenly dropped.
“Take it with the entire salt shaker,” Wells Fargo economists warned. The consensus: wait for December’s data (due January 13) before drawing conclusions. The one reliable bright spot? Gas prices have fallen below $3 nationally for the first time in over four years.
Trump Announces $1,776 Military Bonus — But Where’s the Money?
President Trump announced a one-time “Warrior Dividend” of $1,776 for approximately 1.45 million U.S. military service members, totaling around $2.5 billion. The symbolic amount honors the nation’s founding year, and Trump framed the payment as a reward funded by tariff revenues, which have brought in over $200 billion this year.
However, the move raises questions. It’s unclear how the administration will appropriate the funds without prior Congressional approval — a potential constitutional issue that could complicate the rollout. Defense Secretary Pete Hegseth structured the payment as a “one-time housing allowance supplement” for service members in pay grades O-6 and below.
While the announcement plays well politically, the funding mechanics remain murky. For fiscal hawks, it’s another reminder that tariff revenues — often cited to justify new spending — still require legislative approval before they can be deployed.
ECB Holds Steady, Signals Confidence in European Growth
The European Central Bank kept interest rates unchanged at 2.0% for the fourth consecutive meeting today, holding firm after eight rate cuts earlier in the year brought borrowing costs down from 4%. The decision was widely expected, but what caught attention were the upgraded economic projections: the ECB now sees eurozone growth at 1.4% in 2025, up from a previous estimate of 1.2%.
The catch? Inflation forecasts were also revised higher for 2026, with services inflation proving stickier than policymakers anticipated. ECB President Christine Lagarde emphasized that the central bank is in a “good place” and would continue taking a data-dependent, meeting-by-meeting approach—code for “we’re not cutting or hiking anytime soon.”
For precious metals, the ECB’s pause keeps eurozone monetary policy supportive without fueling fresh inflation concerns. As long as central banks globally remain in easing mode, gold and silver benefit from compressed real yields and weakening fiat currencies.
Silver’s Historic Rally Sparks Profit-Taking Debate
Silver’s breathtaking 120%+ rally in 2025 — breaking its 1980 all-time high and surging past $60 per ounce — has sparked a heated debate among analysts. Some are now calling for investors to lock in gains, pointing to historical patterns showing that years with triple-digit returns are typically followed by poor performance in the next twelve months.
But not everyone’s ready to tap out. Mike Maloney and Alan Hibbard at GoldSilver both believe 2026 could be the year silver hits triple digits, driven by persistent supply deficits, surging industrial demand from solar and EV sectors, and continued safe-haven buying. Bank of America recently raised its 12-month target to $65, while some bullish forecasts see silver climbing to $75-$100 if monetary easing and dollar weakness continue.
For long-term holders, any pullbacks may be viewed as buying opportunities — but short-term traders might take chips off the table after such a historic run.
