Metals have certainly had a year to remember. Firstly, gold reached record highs repeatedly after breaking the $4,000 level, and now it’s the turn of silver, which has drawn attention with its multi-year peaks.
As gold takes a breather, silver has caught investors’ eyes, offering the same benefits at a fraction of the price.
With a gain of over 100% this year, it’s clear to see why silver has become the hot topic of the metal market.
Has silver become more reliable than gold?
The short answer is no. But as a trader, it has become a more attractive option.
History shows that in times of uncertainty, gold tends to perform better and be less volatile. Silver has a dual nature: it is both a precious metal and an industrial metal, which can make it more volatile.
If a recession hits, for example, prices can drop because industrial demand is likely to fall. So basically, when the economy slows, silver drops harder because half of its demand comes from industry.
If we look at this year alone, the performance has been outstanding. Rising 100% throughout 2025, and it still has potentially more room to go.
What’s caused the trajectory?
The surge in price action isn’t down to a single action; it reflects the convergence of multiple factors that have driven the price higher.
One key driver is soaring industrial demand, particularly in electronics and semiconductors, which has led the tech and AI sectors to flourish over the past year. AI models require vast data centres, and the systems that power these centres rely heavily on silver. So basically, the more AI expands, the more silver is consumed.
In addition, demand for green technology has accelerated, requiring substantial silver content for solar panels and electric vehicle components.
The worry over supply chain limitations was also a big concern, as the silver market has been in a structural deficit for several years. Demand consistently outstripping mined supply and recycling led to a further push in price action.
For the reasons above, many economists argue that 2025’s rally is not just a bubble but a structural shift that is here to stay.
Silver has doubled in value since bouncing from the dip in April
Is Silver the New Haven?
With silver outperforming gold in recent sessions, gaining 60% over the past six months, traders are wondering if this is a shift in sentiment.
The convergence of industrial demand growth, supply constraints, and surging investor interest turned silver from a standard precious metal into a broadly sought-after commodity.
If the current trend of green energy and electronic demand continues, silver could remain in the driver’s seat well into next year.
So, $100 per ounce?
Could prices potentially double by the end of next year?
Silver has already moved into record territory, reinforcing the bullish demand but also heightening volatility. Several analysts who raised their targets cite the combination of a weak dollar and structural demand as the driver of the improved outlook.
However, many don’t see this combination of factors carrying the white metal into the triple digits. Even with the surge in prices, there are risks to watch out for.
If mining intensifies, supply could catch up, lowering prices. Then there’s the worry over the AI bubble. If this does begin to burst, the sell-off could be spectacular. Add this to an industrial demand pullback due to an economic slowdown, and you could see a market correction.
Taking the Trade
Confidence is built on structural factors that look secure, all of which represent upside potential.
With silver, taking a trade isn’t without its risks, but the possibilities are there. he metal is influenced by industry and speculation, not just macroeconomic events, which is where gold gains much of its exposure.
If you are going to step into the metal market, make your targets clear. Are you buying a trend or chasing the peak?
The bigger picture remains bullish into early 2026. Silver has broken several resistances and is poised to advance further. Let’s see how much further the metal can go next year!
