The price of silver has reached the $75 per ounce barrier for the first time on Friday, December 28, capping a year of dizzying gains.
This price increase has dramatically outpaced its more famous cousin, Gold.
While both precious metals have posted record price gains, silver’s 161% year-to-date rally has dwarfed gold’s 72% rise.
This prompted analysts to examine the unique forces fueling the white metal’s meteoric rise.
The simultaneous rally in precious metals is broadly supported by expectations of Federal Reserve rate cuts in 2026, a weakening US dollar and geopolitical tensions driving safe-haven demand.
But experts suggest a confluence of factors specific to silver explain its explosive outperformance.
The dual-thrust engine: Industrial demand meets financial investment
Silver has a strong dual potential as opposed to gold which is primarily a monetary and safe haven. This feature currently plays a fundamental role in increasing the price.
Silver is an important component of the global energy transition and technological revolution. Its exceptional conductivity makes it extremely important for:
- Solar Energy: Photovoltaic cells are a massive and growing source of demand.
- Artificial Intelligence (AI): Data centers connected to electronics rely on silver.
- Electronic Vehicles (EVs): EVs also use silver in their critical components, such as power electronics inverters, circuit boards (PCBs), charging ports and battery management systems (BMS).
Additionally, Silver benefits from all the same macroeconomic drivers as Gold, i.e. expected rate cuts, inflation concerns and central bank diversification, but with greater volatility,
Another factor is its lower price per ounce, making it available to a wider pool of retail investors, some of whom have actively organized themselves in online forums.
Tender battles and political tailwinds
Amplifying the increase in demand are major constraints on the supply side. Years of underinvestment in mining exploration have limited new supply. Another important factor was silver’s designation as a US critical mineral, which also adds to its strategic importance, attracting additional policy and investment focus.
Price forecasts: Can the rally last?
Looking ahead, the outlook remains positive but divergent. Analysts suggest that factors such as rising uncertainty and inflation could support higher prices in the coming days.
Some experts are also suggesting $80 per ounce for silver before the end of the year, while Gold’s next big target is close to $4,686.
In short, Silver’s extraordinary rise is not just a side effect of Gold’s rally. Rather, it is the result of a rare adjustment to a combination of factors, including industrial consumption colliding with a strong financial and safe-haven investment rush, all set against a backdrop of tight supply.
This dual engine power has positioned the ounce-humble industrial metal as the standout performer of the 2025 commodity boom.
