Why silver is outperforming gold in 2025

Silver has reached record highs this year, and experts think the rise may continue. The metal has increased together with gold, which also went above $4,000 an ounce in 2025.

In mid-October, silver hit $54.47 per troy ounce, a 71% increase compared with last year. Gold has also risen strongly, up about 54% in 2025, but silver has grown even faster. This is only the third time in 50 years that silver has reached such a high level, with similar peaks in 1980 and 2011.

The 2025 rise is different from past ones because it is not only driven by investors. Low supply, strong industrial demand, and heavy buying from India have all pushed prices higher. After Liberation Day, silver was much cheaper than gold, which showed that silver was undervalued.

At the same time, global mine production has been falling for around ten years, while demand is increasing due to electric vehicles, solar panels, and AI technology. Some new electric cars may even need up to a kilogram of silver. Because silver is important for both industry and investment, many experts believe its price will remain high in the coming years.