Silver has topped $60 per troy ounce

Silver prices have topped $60 per troy ounce for the first time, marking a dramatic rally driven by industrial demand, supply constraints, and macroeconomic factors.

• Gold above $4,200.
• 23-year charts.

SLV vs GLD (YTD Dec 12,2025)

(live chart)

Silver has significantly outperformed gold in 2025, with year-to-date gains often exceeding 100% (reaching record highs above $60–$64 per ounce in December), compared to gold's roughly 60% rise. This has driven the gold-silver ratio down from peaks over 100:1 early in the year to around 70–78:1 by mid-December.The primary reasons for silver's stronger surge stem from its unique dual role as both a precious metal (like gold) and an industrial commodity:

• Explosive industrial demand: Over half of silver's global demand comes from industry, unlike gold which is mostly investment/jewelry. Key drivers include surging use in solar photovoltaics (PV), electric vehicles (EVs), electronics, AI data centers, and green energy technologies. Photovoltaic installations hit peak seasonal demand in late 2025, with industrial consumption remaining near record levels despite minor forecasts of slight declines.
• Persistent supply deficits: The silver market has faced structural shortages for five consecutive years, with deficits projected at 110–150 million ounces in 2025 due to flat or declining mine production (much of silver is a byproduct of other metals) and limited recycling. Inventories are at multi-year lows, exacerbating tightness.
• Investment and speculative inflows: Silver rides gold's safe-haven rally (driven by geopolitical uncertainty, inflation hedges, and central bank buying) but amplifies it with higher volatility. ETF inflows hit multi-year highs, retail demand (e.g., from India and China) surged, and precautionary stockpiling occurred amid U.S. policy shifts designating silver as a critical mineral and potential tariff threats.
• Historical catch-up effect: In precious metals bull markets, silver often lags gold initially but then outperforms dramatically as the gold-silver ratio compresses from elevated levels.

These factors created a "perfect storm" for silver, leading to sharper percentage gains than gold despite both benefiting from similar monetary tailwinds (e.g., weaker dollar, expected Fed rate cuts). While short-term volatility persists, fundamentals point to continued strength for silver into 2026.