Silver was the precious metal that appreciated the most in 2025, having more than doubled its value, surpassing gold in percentage terms and the mark of 70 dollars per ounce.
On Tuesday, silver broke the barrier of 70 dollars per ounce, at around 1:11 pm, Lisbon time, an ounce of silver was traded at 70.294 dollars (around 59.9 euros), this Wednesday, December 24th, at around 9:47 am the metal is trading above 72 dollars.
The metal benefited “clearly the easing of restrictive monetary policies in the main economies”and “as markets began to anticipate cuts in interest rates, demand for the precious metal increased”, XTB market analyst Henrique Tomé told Lusa.
Silver also retains great value as a raw material, as it “the industrial side of demand had a decisive impact on price developments” so this is a “an essential component in production for various industries, such as solar panels, electric vehicles and technologies linked to the energy transition”added the analyst.
The non-magnetic metal traded at the beginning of the year at 28,893 dollars (24.60 euros) per ounce, today it is traded above 72 dollars (61.09 euros) per ounce, which represents a growth of around 150% in the period of one year. “This performance significantly exceeded the appreciation of gold”said Henrique Tomé.
Speaking to Lusa, Banco Carregosa’s trading director, João Queiroz, defined silver as a metal of dual nature, stating that it is susceptible to economic cycles.
“[A] dual nature distinguishes it from other metals and amplifies its cycles, especially in phases of technological transition and macroeconomic instability.”these.
Queiroz also points out the increase in demand for “data centers linked to artificial intelligence, where electrical efficiency is decisive”considering that the “demand is inelastic and difficult to replace in the short term”.
“In parallel, the role of silver as a protective asset was reinforced, in a context of persistent geopolitical tensions, greater economic fragmentation and expectations of more accommodative monetary policies. The gradual loss of confidence in fiat currencies and the increased sensitivity to inflation have favored the search for tangible assets, where silver appears as an alternative to gold, with greater volatility, but also greater appreciation potential”he assured.
In a similar vein, Nova SBE university professor, António Alvarenga, states that silver and other precious metals “by not generating periodic income (interest or dividends), their opportunity cost depends on the level of real interest rates”that is, “when monetary policy is restrictive, with high interest rates, investors are encouraged to prefer bonds or deposits, when it is more expansionary, this opportunity cost decreases and real assets (such as silver) tend to benefit”.
“Corrections are possible, I would even say plausible, in a context of such a large and rapid appreciation of the asset: global appeasement, better relations [entre os EUA, a UE e a China] and eventual signs of stabilization in the American economy could increasingly fuel the idea that silver is overvalued and lead to a chain reaction”he added.
The professor also believes that for “silver-intensive industrial sectors, very high prices can imply a significant increase in production costs, accelerating efficiency efforts (reducing the amount of silver per unit produced), encouraging recycling and the search for alternatives”.
“The fragile balance between strong demand, strong investment, supply limitations and divergent expectations about monetary policy makes the market particularly vulnerable to sudden correction movements, with direct impacts on both industrial users and investors”said António Alvarenga.