Silver’s gains outpace gold’s as prices hit record highs

Spot silver last week surpassed the historic level of $50 per troy ounce in New York, eclipsing a record set in 1980. It was hovering at over $52 at the time of publishing.

Silver bars of different sizes lie in a safe on a table at the precious metals dealer Pro Aurum in March 2023. Photo by DPA / Picture Alliance via Reuters

Amid geopolitical tensions and economic uncertainties, investors have flocked to tangible assets like gold and silver, with the latter often seen as a more affordable safe-haven alternative.

"There’s just a lot of concern about the global economy, and when that happens, people turn to hard assets like silver," Michael DiRienzo, CEO of the Silver Institute, told CNN. "Silver tends to follow gold upwards."

On Monday, Bank of America analysts increased their price projections for gold and silver, marking the first major bank to set a 2026 outlook for gold at $5,000 per ounce and silver at $65 per ounce.

The bank also cautioned about potential short-term volatility for silver, noting that prices could fluctuate as liquidity increases and demand wanes, though silver is expected to remain a preferred choice among investors.

Goldman Sachs indicated that a recent liquidity squeeze may have driven silver’s price surge, but this shortage is likely temporary.

The bank noted that higher silver prices in London are encouraging the metal to "flow back" from the U.S. and other regions, "gradually restoring liquidity."

Other analysts are even more optimistic about the surge of silver.

"I would not be surprised to see Silver well north of $100 in the not-too-distant future," Philippe Gijsels, chief strategy officer at Belgium-based bank BNP Paribas Fortis, told CNBC.

Gijsels, who has been predicting $50 silver for over a year, added: "Big round numbers tend to attract investors like a magnet. Once that price gets in the gravitational field of the big numbers, we typically see an acceleration and a buying climax."

Apart from the rising demand for safe-haven metals, silver is also sought after because of its industrial use, which sets it apart from gold.

Silver is used in many electronics and renewable energy technologies. Analysts say that demand for data centers, solar panels, and smartphones, amid an AI boom, have amplified its price surge.

"Its dual role as an industrial metal and safe-haven asset has amplified the rally, making 2025 a historic year for silver," Ewa Manthey, a commodities strategist at ING, told CNN.

Silver jewelry is displayed in the Manhattan Jewelry district on October 14, 2025, in New York City. Photo by Getty Images via AFP

Supply constraints are also supporting elevated prices. The silver market is experiencing its fifth consecutive year of structural supply deficits due to "stagnant mining output" failing to keep pace with demand, according to Peter Grant, vice president and senior metals strategist.

"Strong and growing demand for silver, combined with a persistent supply deficit, is a recipe for higher prices."

The shortage is visible in India, the world’s largest consumer of silver. In the first eight months of 2025, silver imports fell 42% to 3,302 tons, while investment demand, especially from exchange-traded funds, soared to record levels, Reuters reported.

While macroeconomic and financial factors are fueling investment demand, the outlook for strong demand from technologies such as photovoltaics, electronics, and electric vehicles is adding support to prices.

Matthew Piggott, director of gold and silver at Metals Focus, said: "We see silver following gold and continuing to climb to breach the $60 level in 2026."