This milestone is more than a psychological threshold. It reflects a set of steadily intensifying trends that converged with exceptional force in 2025.

The dominant factor has been the persistent global deficit of physical silver, now in its fifth consecutive year according to multiple analyses. In key trading hubs – London, New York, and Shanghai – available inventories have fallen sharply, exerting sustained upward pressure on prices. The shortage is also reflected in record-high silver leasing costs, which financial analysts say are the highest seen in over a decade.

However, silver is no longer driven solely by investment demand. Instead, technological and industrial sectors are now playing a central role, as this metal is essential for solar panels, batteries, semiconductors, electric vehicles, data centres, and AI-related infrastructure. The rapid expansion of AI and next-generation energy solutions has triggered a surge in silver consumption. In several industrial applications, silver is effectively irreplaceable, making for structurally embedded, stable demand.

The macroeconomic backdrop has also played a role. Expectations of further interest-rate cuts by the US central bank, a weaker dollar, and rising concerns over the sustainability of public debt are prompting investors to shift capital towards physical assets, strengthening silver’s appeal both as a technological metal and as an alternative safe haven in an inflationary environment.

The result? While gold strengthened by approximately 60% on exchanges in 2025, silver doubled in price over the same period. Analysts note that the cocktail of industrial indispensability, investment demand, and constrained supply makes silver a distinctive asset that responds to economic cycles differently from gold.

Silver nonetheless remains the more volatile asset and, unlike investment gold, is subject to VAT. The ascent to the USD 60 threshold was far from linear, punctuated instead by sharp rallies and corrections. Even so, this volatility has not deterred investors; many see each pullback as a temporary cooling-off ahead of further potential gains.

 

Developments in the price of silver

 

Many analyses, including commentary from investment houses and financial media, point to the same conclusion: 2025 was a breakthrough year for silver, and further gains may yet lie ahead. If current industrial and macroeconomic factors persist, prices could continue to rise, with attention already turning to whether USD 70 or even USD 80 is truly out of reach within the next 12 to 24 months.

Silver is thus moving beyond its image as a “cheaper alternative to gold”, carving out its own identity and strategic role in modern portfolios. For investors seeking growth, diversification, and long-term potential, 2025 suggests that silver above USD 60 per ounce is unlikely to be the end of the story – and may instead mark its beginning.