Silver stands out as one of the strongest performing major assets in 2025, significantly outpacing both gold and Bitcoin.
There is not just speculation behind this rally. On the contrary, it is a combination of a rarely seen macroeconomic shift, industrial demand, and geopolitical pressure, and this wave may extend into 2026.
Performance and General Assessment of Silver in 2025
By the end of December 2025, the silver price is approaching $71 per ounce, having risen over 120% since the beginning of the year. During the same period, gold shows an increase of about 60%, while Bitcoin closes the year with a slight loss after peaking in October. Silver starts 2025 at $29 per ounce and shows a steady rise throughout the year. In the second half of the year, the upward momentum increases; both the supply gap widens and industrial demand exceeds expectations.
Gold is also showing a strong upward trend, rising from about $2,800 to over $4,400; this increase is influenced by falling real interest rates and central bank demand.
However, silver is appreciating much faster compared to gold. This aligns with the pattern of silver generally outpacing gold in precious metal cycles.
Bitcoin, however, is moving in another direction. At the beginning of October, it climbed to $126,000, finishing the year around $87,000.
Unlike metals, Bitcoin cannot maintain safe-haven interest during periods of increasing risk as the year-end approaches.
Macroeconomic Conditions Highlighted Resilient Assets
In 2025, many macroeconomic factors supporting silver are coming to the forefront. The most important is the shift towards easing global monetary policy. The Federal Reserve (Fed) is implementing multiple interest rate cuts by the end of the year, which lowers real interest rates and weakens the dollar.
On the other hand, inflation concerns remain unresolved. As in the past, tangible, monetary, and industrial assets are coming to the forefront in this environment.
Unlike gold, silver is a metal that benefits directly from economic growth. In 2025, this dual effect becomes decisive for silver.
Industrial Demand Became the Main Driving Force
The rise in silver is now driven more by physical demand than investment flows. Industrial use accounts for about half of total silver consumption, and this proportion is steadily increasing.
Energy transition plays a leading role here. Solar energy continues to hold the largest share of new demand. Electrification in transportation and infrastructure is further straining current supply.
The global silver market is facing an annual supply deficit for the fifth consecutive year in 2025. Supply is strained because a large portion of silver is produced not from primary silver mines but as a byproduct of base metal mining.
Electric Vehicles Created Structural Demand Growth
Electric vehicles are significantly increasing silver consumption in 2025. Each electric vehicle uses 25 to 50 grams of silver, which is about 70% more than internal combustion engine vehicles.
While global electric vehicle sales are experiencing double-digit growth, annual silver demand in the automotive sector is also jumping to millions of ounces.
The growth of charging infrastructure also strengthens this trend. In high-power fast charging units, silver is used in power electronics and connectivity equipment by the kilogram.
In contrast to cyclical investment demand, silver consumption in the electric vehicle segment has a structural nature. Increased production leads to a permanent rise in direct physical demand.
Defense Spending Quietly Tightened Supply
Military demand is becoming an increasingly important factor each year, even if it is not in the spotlight. Modern weapon systems heavily rely on silver in guidance electronics, radar, secure communications, and drones.
A single cruise missile can contain hundreds of ounces of silver, and all of that amount is lost in use. Therefore, demand in the defense industry creates a non-recoverable (non-recyclable) consumption.
Global military spending is expected to break records in 2024 and continue to rise in 2025 due to conflicts in Ukraine and the Middle East.
Europe, the United States, and Asia are quietly accumulating physical silver while increasing their advanced munitions purchases.
Geopolitical Shocks Strengthened the Trend
Geopolitical tensions have further strengthened the investment rationale for silver. Prolonged conflicts have led to the growth of defense stockpiles, while commercial fragmentation has raised concerns about the security of critical raw material supplies.
Unlike gold, silver is at the intersection of both national security and industrial policies. Many countries are moving towards classifying silver as a strategic material; thus, the indispensable role of silver in both civilian and military technologies has once again come to the forefront.
This situation has created a rare feedback loop: Geopolitical risks have simultaneously increased both safe-haven investments and real industrial demand.
Reasons for the Continuation of the Upward Trend in 2026
Looking ahead, many of the factors that drove silver prices up in 2025 are still valid. The adoption of electric vehicles is accelerating. Grid investments and renewable energy incentives are highlighted as policy priorities. There is no sign of a slowdown in defense spending.
On the other hand, silver supply remains constrained. Processes for new mine investments take a long time, and recycling cannot compensate for losses due to military use.
Gold may continue to perform well as long as real returns remain low. Bitcoin, on the other hand, may recover if risk appetite increases. However, neither gold nor Bitcoin can directly position itself for monetary protection, global electrification, and defense spending.
This is precisely why many analysts believe silver is in a unique position for 2026.
The silver rally in 2025 was not a one-time speculative spike. This movement indicates fundamental structural changes in how the global economy consumes this metal.
If current trends continue, silver's indispensable role for both monetary and industrial purposes could position it to offer better returns than gold and Bitcoin in 2026.
