Silver futures recently hit their highest trading levels since 2012, an impressive achievement supporting silver’s role in the precious metals market. By Thursday morning, silver prices were up 7% on the week and had really taken off. They are over 20% YTD and are underpinned by outstanding momentum. This increase puts silver into one of the best performing assets for 2025.
Silver prices are shooting higher, joining the precious metals sector’s broader rally. Gold is reaping the rewards as well, riding high on this thrilling trend. Gold is up about 25% this year and now trading at its highest price since early 2012. Gold prices were steady Thursday as traders awaited a speech from Federal Reserve Chair Jerome Powell. Even with the positive global shift, there really wasn’t much different from previous positive trading sessions.
Silver prices have exploded this month, emphasizing the metal’s extraordinary upside so far this year. This additional increase is causing a corresponding constriction of the difference between silver and gold valuations. Historically, silver has traded at about 1/15 the price of gold. A powerful rally indicates an inflection point in market leadership and investor psychology. There are multiple factors fueling this shift. A greater industrial demand for silver and the metal’s investment attractiveness as a hedge against inflation are huge factors.
According to market analysts, the increasing demand for silver is tied to unusual economic circumstances. Investors are starving for yield and hunting for international diversification in their portfolios. The ongoing volatility in global markets has led many to reconsider traditional asset allocations, making precious metals an attractive option for risk management.