What happened to the price of silver in 2025?

Silver has experienced a remarkable bull market, more than doubling in value from around $30 (€24.54) per ounce at the start of the year to an all-time high of $67.65 per ounce on December 18.

The metal traded on COMEX — the commodity division of the New York Mercantile Exchange (NYMEX) — near $30 in January and hovered between $37 and $40 through the summer before breaking decisively higher in September. 

Momentum then accelerated, with the strongest moves in the last three months of the year.

The more than 110% year-to-date gain represents a dramatic turnaround for the precious metal, long regarded as the poorer cousin of gold, whose price typically outpaces silver during bull markets.

Although some investors are warning of a potential short-term price correction, sentiment around silver remains bullish for next year.

Before 2025, silver had spent much of the past decade in the $15 to $25 range, with occasional spikes above $30 during periods of investor enthusiasm. But it struggled to sustain upward momentum.

Even in previous peaks in 1980 and 2011, silver topped out near $49 per ounce, far below gold's surges above $1,900.

However, this year, gold has underperformed, rising 60% to around $4,340 per ounce, compared with silver's more than doubling in price.

The breakout was partly fueled by a falling US dollar and expectations of US Federal Reserve rate cuts, which make precious metals more attractive as safe‑haven assets.

But far bigger factors pushed the rally higher, including tightening global supply as production struggles to keep pace with demand.

What challenges are facing silver production?

Latin America, which produces more than half of the world’s silver, is facing declining output as mines age and reserves dwindle.

Mexico, responsible for 25% of the world's supply, has seen double‑digit output drops in recent years. 

One of the country's largest mines, San Julian, in northern Chihuahua state, is approaching end‑of‑life by 2027. The mine is one of operator Fresnillo's biggest operations. Its ore grades are falling and reserves are being depleted.

Meanwhile, Peru, Bolivia and Chile, which together supply nearly a third of global silver, are struggling with declining ore grades that make extraction costlier and less efficient.

These countries also face political instability and tougher mining regulations that have discouraged fresh investment in their mining sectors.

Without new discoveries or supportive regulations, production from Latin America is expected to stagnate or decline by the end of the decade, according to analysts at the London-based GlobalData.

The silver market has, meanwhile, remained in a structural deficit for the fifth consecutive year, the industry association The Silver Institute wrote last month.

Demand this year is projected to exceed supply by around 95 million ounces, the Institute said.

Why is there a growing demand for silver?

Silver demand is rising not only because investors view it as a store of value, but also because it has become essential to modern technology and clean energy.

Its unique properties, especially unmatched electrical and thermal conductivity, make silver indispensable in fast‑growing global industries.

Solar panels, for example, rely on silver paste to conduct electricity. As governments push renewable energy targets, demand from the photovoltaic sector is set to climb sharply.

Electric vehicles (EVs) also require up to two-thirds more silver than combustion-engine automobiles. The metal is used in batteries, wiring and charging infrastructure, embedding the metal into the future of green transport.

Silver is now playing an increasingly critical role in the digital economy. Artificial intelligence (AI) chips and data centers depend on silver for efficient circuitry, where speed and reliability are paramount.

The precious metal's ability to handle massive electrical loads ensures clean signals and stable performance at scale, while high thermal conductivity helps clear the extreme heat generated by AI workloads.

While silver's use in coins and bars is in decline, other traditional uses, such as jewelry, as well as electronics, medical devices and consumer goods, remain strong.

The Silver Institute projects that global industrial demand for silver is expected to grow steadily over the next five years.

Oxford Economics calculated this month that silver demand in the auto sector will grow annually by 3.4% between now and 2031 and that the precious metal will benefit from a 65% projected increase in US data center buildouts over the same period.

What was silver's historical role as money?

For millennia, silver has been trusted as money and a store of value. Ancient civilizations used it in trade because it was rare, durable and easy to divide.

Silver's importance grew even more when European colonizers discovered vast deposits in Latin America, helping it to become the metal of daily transactions. 

Spanish pieces of eight — silver coins worth eight reales, Spain's old currency before the peseta and euro —  became the world’s first global trade currency, circulating from the Americas to Asia and Europe.

In the 19th century, many nations, including the United States and the United Kingdom, tied their currencies to both gold and silver. Britain’s pound sterling took its name from a pound of silver.

Silver lost its role as money in the 20th century when countries dropped silver standards. Gold stayed in central bank reserves, but silver was pushed into industrial use.

It retained its reputation as a hedge against inflation and financial instability, a legacy of its long history as everyday money.

Edited by: Uwe Hessler