Silver Hits Record High with 100% Price Increase This Year, Far Outpacing Gold

Silver Surges to Record High, Doubling in Price This Year

Market Overview

Silver prices climbed to record highs for the second consecutive trading day on Monday, reflecting a dramatic 100% increase since the beginning of the year. The rally is driven by tightenings in global supply and a notable spike in investor demand, far surpassing gold’s performance in 2025.

Investor Sentiment and Institutional Forecasts

Analysts attribute the surge to industrial demand, especially from the renewable energy and electronics sectors. At the same time, retail investors have increasingly turned to silver as a hedge against inflation and market uncertainty.

Deutsche Bank analysts noted that investments in exchange-traded funds (ETFs) have risen steadily, underscoring strong institutional confidence. The bank expects “exchange-traded funds’ holdings in silver to expand further throughout the next quarter.”

Comparison to Gold

While gold remains a traditional safe haven, its price growth this year lags significantly behind silver’s. The gold-to-silver ratio has narrowed sharply, marking one of the steepest moves in decades, indicating shifting momentum in precious metal markets.

Market Implications

Experts suggest that this extraordinary price movement could trigger renewed mining activity and potentially prompt industrial consumers to explore material alternatives. Still, the consensus holds that supply constraints are likely to continue well into next year, maintaining upward pressure on prices.

“Silver’s strength reflects a perfect storm of supply challenges, industrial usage, and speculative momentum,” said a commodities strategist in New York.

Author’s summary: Silver doubled in price this year, rising to record highs as investors and industries drove unprecedented global demand amid tight supply.

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Investopedia on MSN Investopedia on MSN — 2025-12-01

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