LONDON (TECHY QUANTUM) — Silver futures jumped more than five percent early Tuesday, continuing a turbulent 2025 for precious metals as the year closes on an unprecedented high.
March silver contracts rose 5.3 percent to $74.17 an ounce by 10:30 am London time, bringing year to date gains to 153 percent.
The surge followed Monday’s dramatic swings, when prices briefly hit a record $80 an ounce before dropping 8.7 percent in the largest single day decline since February 2021.
“This is a historic move,” said Jeff Kilburg, CEO of KKM Financial. “We haven’t seen a move like this in a long time.”
Silver and other precious metals have experienced a rollercoaster ride throughout 2025. Safe haven demand increased amid geopolitical tensions, while inflation hedging and a weaker US dollar added to investor interest.
Expected interest rate cuts and supply constraints further supported rising prices. Gold futures also rebounded Tuesday, trading 1.2 percent higher at $4,394.30 an ounce, while copper climbed 1.9 percent to $5.673 an ounce.
Analysts noted that silver’s industrial applications, particularly in electronics, solar panels, data centers and electric vehicles, have made it a focal point for both investors and manufacturers.
Florian Ielpo, head of macro at Lombard Odier Investment Managers, said the factors driving commodity gains this year might shift in 2026.
“We’re seeing commodities as one of the top performers for next year, but the source of the performance is more cyclical commodities than defensive precious metals,” Ielpo said.
Market participants also noted the impact of China’s export restrictions on silver, set to take effect Jan. 1. Tesla CEO Elon Musk tweeted over the weekend that the limitations were “not good,” highlighting silver’s critical role in industrial processes.
Silver’s year to date rise of 153 percent outpaced many other commodities and rivaled gains in gold, which increased roughly 40 percent this year.
Historical volatility has been notable, with Monday’s 8.7 percent drop marking a rare single-day loss in recent years. Analysts track these swings closely, noting their implications for investment strategy and industrial sourcing.
Industry insiders described a mix of excitement and caution. “We are seeing both industrial buyers and speculators reacting to every headline,” said Maria Lopez, a commodities trader in Madrid.
“The swings are extreme, but the long term demand for silver remains strong.” Meanwhile, small scale investors expressed surprise at the speed of changes.
“It’s hard to predict,” said Rajesh Kumar, a retail investor in New Delhi. “Prices go up and down so quickly it feels like a rollercoaster.”
Analysts suggest silver’s trajectory in 2026 could stabilize, with cyclical commodities taking the spotlight.
Expected economic growth in major economies might reduce the allure of safe haven metals, although industrial demand and geopolitical uncertainties may continue to influence silver prices.
Silver’s dramatic moves in 2025 have underscored both its investment appeal and volatility. While experts forecast a potentially steadier outlook next year, the metal remains closely watched for its dual role as a hedge and industrial input.
