Precious Metals Deliver Stellar Returns: Gold Climbs 65%, Silver Skyrockets 150% Through 2025

CodeAuditQueen · 2026-01-05T14:00:24+00:00

The precious metals market saw significant gains in 2025, with gold up 65% and silver soaring 150%. Factors included de-dollarization, reduced interest rates, central bank purchases, and supply shortages, enhancing their appeal as alternative investments.

CodeAuditQueen

2026-01-05 14:00:24

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The precious metals market wrapped up an outstanding year, with both gold and silver posting remarkable gains that underscore their renewed appeal as alternative assets.

Gold’s Consistent Rally

Spot gold experienced relentless upward momentum throughout 2025, capturing approximately 65% annual gains and touching a record high of 4,549.96 USD per ounce. The year saw gold establish over 50 new record highs, signaling sustained investor confidence and safe-haven demand. By year-end on December 31, spot gold settled at 4,318.65 USD per ounce, down marginally 0.46% on the final trading day.

Silver’s Exceptional Surge

Silver’s performance proved even more impressive, delivering a staggering 150% increase for the year—its strongest showing in over a decade. The industrial metal reached a historical peak of 83 USD per ounce before finishing December 31 at 71.51 USD per ounce, down 6% on the last day of trading.

Market Drivers Behind the Rally

Several structural forces propelled both metals higher. The global “de-dollarization” trend continues reshaping currency dynamics and capital flows, enhancing precious metals’ role as portfolio diversifiers. The Federal Reserve’s pivot toward rate cuts reduced the opportunity cost of holding non-yielding assets like gold, making them more attractive relative to fixed-income alternatives.

Central bank gold purchases remained a consistent demand driver throughout the year, reflecting monetary authorities’ preference for tangible assets in an uncertain macroeconomic environment. Meanwhile, silver benefited from structural supply shortages in the global market that have persisted across multiple consecutive years, intensifying price swings and creating favorable conditions for value-seeking investors.

Industrial applications also supported silver demand, as manufacturing sectors incorporated the metal into production cycles, further tightening the supply-demand balance and amplifying volatility in both directions.

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