In 2025, silver became one of the leaders among major assets, significantly outpacing both gold and bitcoin in terms of dynamics.
The sharp rise in the metal's value was driven not only by speculative sentiments. Demand for silver increased amid a rare coincidence of macroeconomic changes, high industrial demand, and strong geopolitical pressure. This balance may persist in 2026.
Dynamics of silver
By the end of December 2025, silver was trading close to $71 per ounce. Over the year, the metal increased in price by more than 120%. The price of gold rose by about 60% during the same period, while Bitcoin ended the year slightly lower. Recall that the maximum BTC was recorded in October 2025. At the beginning of 2025, silver was priced at about $29 per ounce and steadily grew throughout the year. The acceleration became particularly noticeable in the second half of the year against the backdrop of increasing supply shortages and unexpectedly high demand for the metal from the industry.
Gold also rose in price, surpassing $2,800 and settling above $4,400 per ounce. This trend was influenced by falling real yields and sustained demand from central banks.
At the same time, silver confidently outperformed gold. This behavior corresponds to historical trends. The fact is that during periods of high volatility in precious metals, the price of silver usually moves more actively.
Bitcoin behaved differently. In the fall, at the beginning of October, the price surged to a record $126,000 but quickly changed direction, dropping to $87,000 by December.
Unlike precious metals, Bitcoin could not retain the flow of investors seeking protection during times of rising uncertainty at the end of the year.
Why silver is actively growing
There are several reasons for the positive dynamics of silver in 2025, which may form the basis for continued growth of the metal in 2026.
Macroeconomics
In 2025, the silver market was supported by several key macroeconomic factors. The main role was played by the transition of global monetary authorities to a softer policy. The US Federal Reserve lowered the rate several times by the end of the year, which reduced real yields and weakened the dollar.
At the same time, inflationary risks have not disappeared from the agenda. In such a situation, tangible assets traditionally benefit, possessing not only investment potential but also industrial potential.
Unlike gold, the dynamics of silver are directly related to economic growth. This dual nature became a decisive factor in 2025.
The foundation of silver's growth in 2025 was not an influx of investments, but the demand for physical metal. Industrial consumption accounts for about half of the entire market volume, and this share continues to increase.
A key factor has been the transition to 'green' energy. Solar energy remains the main source of additional demand, while the growth of electrification of transport and infrastructure has only intensified pressure on limited supply.
The global silver market in 2025 recorded a deficit for the fifth consecutive year. Supply could not keep up with demand: most of the metal comes as a byproduct of mining non-ferrous metals, rather than from primary silver mines.
Electric vehicles
Against the backdrop of explosive growth in electric vehicle production, silver began to be consumed much faster. Each electric car contains from 25 to 50 grams of silver — about 70% more than in a conventional internal combustion engine vehicle.
The aggregate demand from the automotive industry reached tens of millions of ounces per year thanks to double-digit growth rates in global electric vehicle sales.
The development of charging infrastructure further supported the trend. In powerful fast-charging stations, kilograms of silver are used for electronics and connectors.
Unlike investment demand, which often has a cyclical nature, silver consumption in the electric vehicle sector is stable and directly related to the growth of production.
The needs of defense companies have become a less noticeable but important driver. Modern weapon systems cannot do without silver: it is used in electronics for guidance systems, in radars, secure communication means, and drones.
In one cruise missile, several hundred ounces of silver may be contained — and all this metal is destroyed upon use, cannot be recycled, and does not return to the market.
Defense spending worldwide hit historical records in 2024 and continued to rise in 2025 amid military conflicts in Ukraine and the Middle East.
In Europe, the USA, and Asia, countries intensified purchases of modern ammunition, leading to a noticeable increase in the consumption of physical silver.
Geopolitics
The escalation of the geopolitical situation only strengthened the position of silver. In the context of prolonged military conflicts, countries began to build significant stockpiles of the metal, and the fragmentation of global trade added concerns about the stability of supplies of strategic raw materials.
Unlike gold, silver has found itself at the intersection of national security and industrial policy. Several countries have included the metal in their list of strategic materials, reflecting its significance for both civilian and military technologies.
As a result, a rare closed loop has formed: geopolitical risks simultaneously spurred demand for silver as a safe haven and as a necessary industrial resource.
Why silver will continue to grow in 2026
Looking ahead, the main factors driving the price growth of silver, which manifested in 2025, retain their strength. Electric vehicles are gaining popularity even faster, the development of energy networks and investments in renewable sources remain a priority for authorities, and military budgets continue to grow.
Silver supply remains limited. New deposits require long preparation for launch, and secondary recycling does not cover all the growing losses of the metal due to military demand.
Gold can maintain a strong position if real yields remain low. Bitcoin can rise if interest in risk returns. But neither of these assets combines a protective function with a direct link to the global trend of electrification and rising defense expenditures.
This combination of reasons shapes the analysts' viewpoint. Market participants expect continued growth of silver in 2026.
Conclusions
The silver rally in 2025 is not a one-off price spike, but a reflection of a deep restructuring of demand and consumption of this metal in the global economy.
If current trends persist, silver, combining the role of a safe haven and an indispensable industrial resource, is capable of surpassing gold and Bitcoin again in 2026.
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