Silver price once broke through $85 per ounce, traders weigh supply and demand dynamics.

The price of silver has soared, continuing its high volatility trend. Industry institutions previously pointed out that investment demand in the coming year will be stronger, while industrial demand will weaken. On Wednesday, silver prices surged by 6.8%, rising by approximately one-third from last week's low. The Silver Institute released a report stating that due to the surge in investment demand outweighing the weakening jewelry demand and the reduced use of silver in the solar energy sector, the silver market will see a supply deficit for the sixth consecutive year. The price of silver has experienced dramatic fluctuations over the past year, more than doubling in price due to investment demand. However, the upward trend came to a sudden halt after experiencing the largest single-day decline in history at the end of January. Since then, silver prices have rebounded slightly, but the volatility remains high.