By Antonio Di Giacomo, Senior Market Analyst at XS.com
Silver is going through one of the most significant moments in its recent history, consolidating around the $ 66-per-ounce area after decisively breaking through key
resistance levels that had capped its advance for years. So far in 2025, the metal has gained more than 120%, entering a price-discovery phase reflecting a macroeconomic environment shaped by declining interest rates, heightened global uncertainty, and structurally strong demand.
Unlike previous cycles, the current rally is not driven solely by speculative flows. Markets are pricing in cumulative rate cuts of 75-100 basis points across major economies by 2026, significantly reducing the opportunity cost of holding non-yielding assets. This backdrop has broadly supported precious metals, but silver has
shown greater sensitivity to shifts in liquidity conditions and monetary expectations.
One of the main drivers behind the bullish move is industrial demand. It is estimated that more than 55% of global silver consumption is for industrial use, with a growing share from sectors such as renewable energy, advanced electronics, data centers, and electric vehicles. In particular, the solar industry continues to increase its use of silver, reinforcing a source of demand that is largely independent of short-term financial cycles.
On the supply side, the market remains tight. Global mine production has grown only modestly in recent years, while recycling accounts for just a fraction of annual
consumption. This imbalance has led to consecutive deficits in the physical market and reduced available inventories, amplifying price movements whenever demand picks up further.
Compared with gold, silver has delivered a markedly stronger performance. While gold has posted gains of around 60–65% in 2025, silver has nearly doubled that return. This divergence reflects its hybrid nature: it acts as a safe-haven asset during periods of uncertainty while also benefiting directly from industrial and technological expansion, which explains its relatively higher volatility.
From a market-behavior perspective, the bias remains constructive, though not without technical corrections. After reaching record highs, episodes of short-term
profit-taking have emerged; however, these pullbacks have been contained, with buyers reappearing in the $62–64 area, reinforcing the perception of a solid underlying trend.
Looking ahead to the coming months, attention will focus on the evolution of real interest rates, the dollar’s behavior, and the resilience of global industrial growth. As long as these factors remain aligned, the market could attempt to extend the move toward psychologically essential levels such as $70 per ounce, further cementing silver as one of the standout assets of the current cycle.
In conclusion, silver is not only reaching record highs but also redefining its role within the commodities market. With annual gains exceeding 120%, industrial demand accounting for more than half of total consumption, and an increasingly supportive monetary backdrop, the metal combines rare cyclical and structural fundamentals. While volatility is likely to persist, the broader picture suggests the current move reflects a regime shift rather than a fleeting rally, positioning silver as a key protagonist heading into 2026.