Silver outperformed gold in 2025

Significant developments took place in the precious metals market last year. Finishing the year with a 146% increase, the price of an ounce of silver delivered a record performance, outpacing gold, which provided a 64.2% return to its investors.

2025 was a historic period for precious metals. The US Federal Reserve's loosening monetary policy, the rise in geopolitical tensions, and especially the increase in demand for industrial use were effective in the price hikes. Low interest rates led investors to find precious metals more attractive. The Federal Reserve's interest rate cuts throughout the year also made a major contribution to the rise of silver in particular.

The rise in the silver market last year was recorded as the fastest surge since 1979. Silver, which saw a 434% increase in 1979, witnessed a rapid climb in 2025 as well. Starting the year at the $28.9 level, the ounce price of silver set a new record with the $84 peak it saw in December and finished the year at the $71.1 level.

In parallel with these developments, the gold-silver ratio also fell to a remarkable level. The ratio, which dropped to 54.03 in 2025, marked the lowest point of the last 12 years.

INDUSTRY'S APPETITE FOR SILVER IS GROWING

Silver has begun to stand out not only as a safe haven but also as one of the indispensable raw materials for industry. Demand for silver, which is used in solar energy technologies, electronic products, and the construction of electric vehicles, continues without slowing down. In particular, the green energy transition, photovoltaic panel production, and electrification processes that stand out in data center infrastructure are among the main factors increasing the industrial use of silver.

The inclusion of silver in the US "critical minerals" list strengthened expectations that global demand could increase even further. In addition, the needs of the defense industry keep interest in this metal high. Furthermore, the fact that the silver market has been experiencing a supply deficit for a long time and the ongoing customs duty risk in the US stand out as other factors driving prices upward.

The fact that silver production is largely a byproduct of other minerals also causes miners to be unable to respond quickly to increasing demand. With the growing interest of individual investors, especially in North America, the appeal of silver, known as the "poor man's gold," is gradually increasing.

"THE RALLY IN SILVER ALSO BRINGS TAX LIABILITIES"

Saxo Capital Head of Commodity Strategy Ole Hansen drew attention to the restrictions China has imposed on silver exports, reminding that China is both a major importer and in the position of a refiner and exporter. Hansen stated that this development could trigger the rise in silver in the short term, but that developments that could cause demand to decrease could be seen if prices rise too high.

Hansen also made the following assessment:

"Investors and traders benefiting from the rise in silver may face significant tax liabilities and may turn to reducing their risks to obtain cash. Stories about a worldwide shortage of silver often ignore the significant amount of silver stored in drawers and cabinets around the world."

News Source: 12punto