Silver Outperforms Gold with 44% Gain in Past Year

Silver has taken the spotlight in the precious metals market, outperforming gold with a remarkable 44% annual gain compared to gold’s 41% return. This surge comes as global investors seek safety and higher yields amid ongoing volatility and economic uncertainty.

For the first time since 2011, silver vaulted past the $40 mark, currently trading near $40.68 per ounce, just $8 away from its all-time peak. Strong demand from both institutional and retail buyers, tighter supply, and a renewed appetite for safe-haven assets have all contributed to the rally.

What factors put silver ahead in 2025?

A key driver has been the proposed addition of silver to the U.S. critical minerals list by the Department of the Interior and the U.S. Geological Survey. The move signals strategic importance and boosts demand from government agencies and industry, adding to silver’s allure for investors worldwide.

Major central banks, including those in Saudi Arabia and Russia, have begun to stockpile silver at higher rates, reflecting growing belief in the metal’s value as a store of wealth and its expanding industrial applications.

The relatively small size of the silver market, about $30 billion in annual turnover, means price swings can happen quickly when demand rises.

Did you know?
Silver’s all-time high was $48.70 per ounce, set in 2011. In 2025, silver is just $8 away from setting a new price record.

Can silver’s rally continue?

Market analysts expect silver to face near-term corrections and volatility but remain optimistic about long-term prospects. Factors like increasing use in electric vehicles, solar energy, and electronics point to stronger industrial demand, while miners report limited new project activity and persistent supply constraints.

Historically, silver outpaces gold when both metals rally together. Experts say diversifying investments between silver and gold is prudent, especially as global central banks continue supporting precious metals and global trade uncertainty keeps safe-haven demand elevated.

ALSO READ | DP World Invests $800M As Syria Resumes Global Oil Sales

What’s next for gold and silver investors?

With silver’s performance catching widespread attention, investors are re-evaluating portfolio strategies to capitalize on the metal’s current momentum.

Both gold and silver remain central to wealth preservation during turbulent times, but silver’s breakout run promises continued excitement for the months ahead.

As eyes stay on the $48.70 all-time high, silver’s future hangs on global supply trends, policy shifts, and the evolving role of precious metals in new technologies.