Silver Breaks Records Amid CME Halt

By Doug Young – 30 November 2025

Introduction

Silver prices surged to record levels around $56 per ounce on November 28, 2025, coinciding with a major trading halt at the Chicago Mercantile Exchange (CME), confirming a technical breakout above prior all-time highs.

The disruption paused futures trading in commodities, foreign exchange, and equities due to a data center cooling failure during thin post-Thanksgiving volumes, while global markets like Shanghai continued operations.

As of November 30, silver spot prices consolidated near $55 per ounce, with India rates at ₹1,85,000 per kilogram (roughly $33.50 per ounce equivalent, up 21% monthly).​

​The CME Disruption

Timeline of Events

Silver approached prior highs of $53-54 per ounce before breaking out by over 3%, bolstered by its 50-day moving average as support.

The halt struck at 9:44 PM ET on November 27 at the CyrusOne CHI1 facility in Illinois, impacting the Globex electronic platform. Trading resumed gradually with capacity restrictions, achieving full operations within hours.

Official Cause and Speculation

CME officials cited overheating servers in a facility designed for 2015 data loads, now strained by 2025 processing demands that halted 90% of global derivatives trading.

Silver market participants speculated low London stocks and intense demand caused the issue, though no evidence supports cyberattack or manipulation claims.

Such technical failures have precedents in exchange history, unrelated specifically to silver volumes.

Silver’s Technical Breakout

Price Action Analysis

The metal exceeded previous highs with support from 10-day and 50-day moving averages, as the gold-silver ratio fell below 77:1.

Momentum persisted despite recent CME margin hikes of 5-9% on silver futures, with records set in over-the-counter and Shanghai trading during the halt—peaking at $56.41/t.oz.

Prices pulled back to around $55 per ounce post-resumption amid subdued volumes.

Historical Chart Patterns

A 45-year cup-and-handle pattern on silver charts completed its breakout. The 50-day moving average provided consistent uptrend support, while 200-day tests occur less frequently during advances.

Supply-Demand Fundamentals

Demand Drivers

Industrial applications account for about 50% of silver use, including solar photovoltaics, electronics, electric vehicles, and medical devices.

Exchange-traded product inflows reached 95 million ounces, alongside safe-haven demand amid monetary concerns.

Multi-year supply deficits, exceeding seven years, stem from persistent shortfalls.

Supply Constraints

Mine production remains flat or declining due to elevated costs, with recycling unable to fully offset gaps.

COMEX and London inventories hit lows, driving physical premiums particularly in Asia.

Fragmented global exchanges, including Shanghai, lessen Western market dominance.

Echoes of 1979 Silver Mania

Key Similarities

Late November 1979 saw silver rise from $6 to $17.50 per ounce, paralleling the current breakout timing roughly 46 years later before a $50 intraday peak in January 1980.

CME employed repeated margin increases, followed by position limits and “liquidation orders only” rules, peaking gold and silver simultaneously. These measures addressed threats to the dollar, then eight years into fiat status.

Key Differences

Adjusting 1980 peaks for M2 money supply and GDP growth equates $50 to over $500 today.

Unlike the Hunt brothers’ concentrated position, today’s market lacks a single dominant player, with global exchanges diluting intervention effects.

U.S. designation of silver as a critical mineral bolsters its industrial profile.

Regulatory and Exchange Responses

Recent Margin Adjustments

CME raised silver and gold futures margins by 5-9% multiple times since September 2025 to limit leverage.

A 2011 hike of 84% temporarily stalled a rally near $50, though globalization reduced such impacts.

Position limits, as used in 1979, represent a potential escalation.

Oversight and Transparency

CME disclosed the halt as infrastructure-related, with no trading irregularities noted.

The Commodity Futures Trading Commission (CFTC) oversees manipulation risks, informed by post-1970s reforms.

Broader Market Context

Intermarket Links

Silver outperformed gold as their ratio compressed, with both metals reaching records of late.

Federal Reserve policies, inflation indicators, and geopolitical factors influence precious metals pricing.

Dollar softening supports commodity advances.

Global Pricing Variations

India spot reached ₹1,85,000 per kilogram, while Thailand premiums reflect local logistics.

Disparities between COMEX, Shanghai, and India underscore physical versus paper market dynamics.

Expert Perspectives

Analyst Views

Mike Maloney of GoldSilver highlighted monetary signals over the technical glitch. Ben Rickert noted fiat erosion trends, aligning with Silver Institute deficit forecasts.

Contrarian Notes

Increased recycling could ease supply pressures, while economic slowdowns might curb industrial demand. Technical breakdowns below 50-day support signal reversal risks.

Conclusion

The silver market’s record highs amid the CME halt underscore persistent supply deficits—now projected for a fifth straight year—and surging industrial demand, even as global economic uncertainties loom.

While technical patterns and historical parallels suggest sustained momentum, regulatory responses and macroeconomic shifts like Federal Reserve policy continue to shape volatility.

Traders monitor key supports and global inventory levels as the metal navigates its dual role in industry and investment. 

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