Silver Price Records Historic Surge in 2025, Eyes Further Gains

Exceptional Performance Driven by Multiple Factors

The price of silver has demonstrated an extraordinary performance in 2025, surging by 158.64% year-to-date to reach US$74.694 per ounce as of December 26, 2025 ⁴

. This remarkable growth is attributed to a combination of factors including structural supply deficit, soaring industrial demand, and favorable macroeconomic conditions.

Industrial Demand Fuels Growth

The primary driver behind silver's impressive performance is its increasing demand in industrial applications, particularly in the renewable energy sector and electric vehicle (EV) manufacturing. Silver's superior electrical conductivity makes it an essential component in solar panels and various electronic devices. Analysts note that this industrial demand has been a significant factor in the metal's price appreciation ²

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Global Macroeconomic and Geopolitical Influences

The surge in silver prices has also been supported by global macroeconomic factors and geopolitical tensions. Expectations of potential interest rate cuts by the US Federal Reserve have enhanced the appeal of precious metals as alternative investments. Additionally, escalating geopolitical conflicts and economic uncertainties have contributed to the safe-haven demand for silver and other precious metals ³

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Market Projections for 2026

Looking ahead to 2026, market analysts remain optimistic about silver's growth potential. Kelvin Wong, Senior Market Analyst at OANDA, suggests that silver could reach US$90 per ounce in the first half of 2026, driven by continued industrial demand and favorable market conditions. The metal's current price rally is seen as catching up with its historical ratio to gold, which has also seen significant gains in 2025 ³

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Comparative Performance of Precious Metals

Silver's performance in 2025 has outpaced other precious metals, with a 158.64% YtD increase compared to gold's 71.86% gain ⁴

. This outperformance is attributed to silver's dual role as both an investment asset and an industrial commodity. The combination of strong industrial demand and investment appeal has made silver one of the top-performing assets of the year.