Demand for gold and silver is the second highest in history.

Trading volume on the CME Group increased impressively in November.

According to a report released on December 2nd, the average daily trading volume (ADV) on the CME Group in November reached 33.1 million contracts, a 10% increase year-on-year. This is the second-highest ADV ever recorded, reflecting strong interest in hedging instruments amid rising commodity prices.

In the metals sector specifically, CME Group reported a 52% increase in ADV, most notably in micro-futures (small-sized gold and silver contracts), which are becoming a popular choice for individual investors seeking low-cost market entry.

The data also shows:

Micro Gold Futures (1/10 of a standard 100-ounce contract) reached 476,000 ADV contracts, a 235% increase year-on-year.

Silver Futures reached 108,000 ADV contracts, up 22%.

Micro Silver Futures (1/5 of a 5,000-ounce silver contract) reached 75,000 contracts ADV, up 238%.

The surge in micro-contracts indicates a clear shift in capital flows away from individual investors, a group considered to be more flexible and sensitive to short-term price fluctuations.

The sharp upward trend of silver on Google Trends reflects market sentiment.

According to Google Trends data for the last week of November, the keywords “silver price” and “silver futures” surged in North America and Europe. This search boom coincided with a nearly 15% increase in silver prices in just one week.

Google Trends shows that interest in silver is currently at its highest level since July 2020, a time when silver experienced a similar surge.

According to a CME report, silver attracted the most attention in November. The price of silver rose 18.6%, marking its strongest monthly gain since July 2020. Notably, most of the increase occurred in the last week of November when silver surpassed the $55/ounce mark for the first time in history.

Notably, this price surge occurred immediately after CME silver trading was interrupted for 10 hours due to a technical issue. Trading resumed at the start of the North American session, and prices continued to rise sharply, indicating that retail liquidity remained strong.

As December began, silver continued its upward trajectory. In the most recent trading session, silver was recorded at $59.275 per ounce, up more than 100% from the beginning of the year.

Market analysts believe the current trend in silver stems from two factors:

Demand for individual investment continues to rise, as evidenced by the volume of micro futures.

Silver supply has declined for several consecutive quarters due to limited mining output and increased industrial demand, particularly from the renewable energy sector.

The Silver Institute has warned that the global silver market faces a shortage for several consecutive years, and the shortage is projected to widen further in the coming year.

In a report to investors on December 2nd, Chris Mancini, co-manager of the GOLDX fund at Gabelli Funds, argued that silver remains relatively undervalued compared to gold.

He cited historical figures on the ratio between gold and silver:

“The long-term ratio between gold and silver is around 68. Currently, it is 74, suggesting that silver has the potential to rise back to equilibrium. If gold holds its price, silver could advance from $58 to around $65 per ounce,” he wrote.

This assessment aligns with the trend of retail cash flow favoring silver over gold due to its higher volatility and expected profit margins.

Experts warn that as silver prices continue to reach new highs, volatility will increase significantly. However, CME Group data indicates stable demand from individual and institutional investors is supporting the long-term uptrend.

Amid geopolitical instability, persistent inflation, and expectations that the Fed will maintain its loose monetary policy into 2026, precious metals are projected to continue to be an important risk-hedging option.