In 2025, silver managed to outperform gold, becoming an important investment and a highly sought-after industrial metal, benefiting from global conditions characterized by geopolitical tensions, inflationary pressures, and market volatility since the beginning of January.
Data indicates that silver prices rose by more than 120% by the end of December 2025 compared to the beginning of the year, while gold achieved gains of only about 55%. This difference reflects a change in investor behavior and the importance of each metal in their investment portfolios.
Economic expert “Sahar El-Damaty” believes, in statements to “Al-Ain Al- الإخبارية,” that the main reason for silver’s superiority lies in its dual nature: it is a hedging tool and a fundamental industrial component. Demand for it has increased due to the expansion of solar energy projects, in addition to supply constraints.
“El-Damaty” adds that expectations regarding changes in global monetary policy also played a role, as expectations of interest rate cuts reduced the opportunity cost of holding non-yielding metals, and silver was “more sensitive” to these changes, in conjunction with expectations of improved economic activity that enhances industrial demand.
On the other hand, gold maintained its position as a traditional safe haven, driven by factors such as the continuation of the war in the Gaza Strip and the expansion of the conflict in the Middle East, in addition to US trade policies that raised concerns about global growth, which revived the momentum of the precious metals sector in general and paved the way for silver.
“Lotfi Mounib,” Vice President of the Gold Division, affirms to “Al-Ain Al- الإخبارية,” that gold was like the “shoulder” on which silver climbed during 2025, as its rise prompted some investors to look for cheaper alternatives capable of achieving double gains.
However, the text indicates that the rise of silver was not without risks, due to its high volatility, as part of the gains was linked to speculative flows, but industrial demand gave it a stronger “support base” compared to previous periods.
On the supply side, the silver market faced challenges because its production is often a secondary product of other metals such as copper and zinc, making increasing production in response to rising prices slow and complex, in addition to the decline in global inventories, which increased pressure on prices. As for gold, it benefited from a deeper market and greater flexibility, which limited its volatility compared to silver.
Looking at 2026, the text indicates that the relationship between gold and silver will be more complex, with expectations from major financial institutions such as “JP Morgan” for the continued strength of gold, which may provide a supportive ground for silver, but does not guarantee a repeat of the same exceptional performance. (Al-Ain)
