Silver Jumped 150% in 2025. How Much Longer Can This Shine Last?

Silver was one of the most stunning trades of 2025. Prices were up 150%+ in the year. Gold also rallied hard at 70%+, but silver still stole the spotlight.

So the natural question is not “wow”, it is “what changed?” Because rallies like this rarely run on just one reason.

First, put the rally in context

Silver is not a “slow and steady” asset. It often behaves like a levered version of gold when markets get excited about precious metals. When the mood is bullish, silver can move faster. When the mood flips, it can also fall faster.

That volatility is the price you pay for the upside.

Was it the demand–supply gap? Not really

A popular explanation is the supply constraint story. Silver supply is limited because a lot of it is produced as a by-product of other metals, so supply cannot quickly respond to price spikes.

But here is the catch. Silver has been persistently undersupplied since 2021. The demand–supply gap has been in the 10% to 15% range for years. Yet the big price breakout only showed up in 2025.

Even the “ETF demand exploded” angle does not fully close the gap. Silver ETF demand in 2025 was around 70 million ounces, which is roughly similar to 2024.

So yes, supply tightness matters. But it does not explain the timing of the 2025 surge on its own.

Then what changed? Demand expectations did

If the present demand did not suddenly jump, the market likely started pricing the future differently.

Silver sits at the intersection of “old money” and “new economy”:

• EVs use silver in electrical systems and components.
• Alternate energy (especially solar and related hardware) uses silver in industrial applications.
• Data centers and high-electronics infrastructure increase demand for conductive materials.

Now add this to the supply picture. The quantum of silver mined in 2025 is stated to be lower than in 2016, while industrial demand over the same period has grown by nearly 40%.

That combination creates a powerful narrative: “future demand is rising, supply is not.” Markets tend to price narratives early, sometimes far ahead of actual consumption.

Silver rallies usually ride behind gold

Silver’s rally also makes more sense when you see it as part of a broader precious-metals move.

Historically, the pattern often looks like this:

• Gold starts the rally and leads early.
• Silver follows later as the “cheaper” precious metal and picks up pace.

This was visible in earlier cycles like 1979 and 2011. In 1979, gold rallied about 160% while silver surged around 415%.

The mechanism that often gets discussed here is the gold–silver ratio.

Gold–silver ratio, in simple

The gold–silver ratio tells you how many ounces of silver equal one ounce of gold. It typically sits in a broad range of 60–80.

At the peak of the gold rally in early 2025, the ratio reportedly crossed 100. Later, it fell to around 57. That fall usually implies silver “caught up” relative to gold, and that catch-up can drive sharp silver outperformance.

In other words, part of silver’s rally can be explained as a ratio reset, not just a standalone silver story.

Why silver can reverse harder than gold

Even when both rally together, silver is structurally different from gold.

• Central banks hoard gold, not silver. That creates a steadier base of long-term demand for gold.
• Market depth is smaller in silver. Global silver ETF AUM is about $40 billion, versus nearly $580 billion for gold ETFs.

A smaller pool means flows can move prices more aggressively in both directions. Silver can give you big spikes, but it also has a history of deep drawdowns and long stretches where prices go nowhere.

So what should silver investors do now?

The honest answer: it depends on what you think you own.

If you own silver thinking it behaves like gold, you may be disappointed. Silver often behaves like a high-volatility add-on to the precious metals theme. It can rise sharply, but it can also erase gains quickly on the way down.

That is why a more practical way to think about silver is as part of a precious-metals basket, instead of treating it as a core long-term anchor by itself.

One framework mentioned in the source is a 15%–20% allocation to precious metals, with gold as the main component and silver as a smaller portion. The idea is simple: gold provides stability, silver adds potential upside, and the basket approach reduces the risk of getting whipsawed by silver’s volatility.

Key takeaways

• Silver rose 150%+ in 2025, far outpacing gold’s 70%+ rally.
• The demand–supply gap exists since 2021, but it does not fully explain why the breakout happened only in 2025.
• Rising demand expectations from EVs, alternate energy, and data centres appear to be a key driver.
• Silver rallies often follow gold, and the gold–silver ratio reset (from 100+ to ~57) can amplify moves.
• Silver is structurally more volatile than gold due to shallower market depth and lower institutional “sticky” demand.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice.