Silver Will Outpace Gold?

Gold has traditionally been viewed as protection against inflation and a useful asset during uncertain economic conditions. For that reason, it is not surprising that gold prices reached historic highs over the past year. As prices climbed, investors rushed to purchase bullion and coins or establish gold IRAs, and many newcomers entered the precious metals market for the first time.

The surge was not limited to gold. Silver prices increased as well, and silver IRAs began to appear as a popular alternative to traditional gold IRA options.

Because interest in both metals has grown, investors are increasingly asking which metal better fits a portfolio. To provide guidance, analysts and industry professionals have shared their expectations for whether silver could outperform gold in 2025.

Silver may outperform gold in 2025

As of December 1, 2024, gold traded above $2,600 per ounce, while silver hovered near $30 per ounce. Gold will likely remain far more expensive per ounce, but many analysts believe silver could deliver larger percentage gains during the coming year.

Daniel Boston, founder of Preserve Gold, expects silver to exceed gold’s performance in 2025.

Boston points out that gold reached about $2,000 per ounce in 2011 following the financial crisis. With prices now near $2,700 per ounce, he believes buyers today are entering near the top of the cycle. Silver, however, peaked at just under $50 per ounce in 2011 and currently trades around $30, suggesting greater room for appreciation.

He argues that purchasing gold at current levels means paying near record highs, whereas silver could potentially double if it returns to its previous peak. In his view, silver offers stronger upside potential with comparatively limited downside risk, making it the more attractive focus for investors at present.

Jose Gomez, a partner at Summit Metals, shares a similar outlook. He estimates silver could rise 25 to 30 percent from its current price, potentially reaching $38 per ounce, while gold might increase to around $2,900 during 2025.

Gomez believes silver has an advantage because large institutional investors have already driven gold prices higher, Bitcoin has drawn interest away from gold among retail buyers, and gold remains expensive for many individuals.

He expects gold demand to stay strong globally but also anticipates a notable increase in silver demand.

According to Gomez, industrial uses are expanding rapidly due to solar energy projects, developing electric vehicle battery technologies, and military applications that require high performance electronics. Because silver conducts electricity more efficiently than copper, it remains the preferred material for advanced electronic components.

Randy Smallwood, CEO of Wheaton Precious Metals, also points to industrial consumption as a key factor supporting silver’s prospects. He adds that other developments may further increase demand.

Central banks have been purchasing gold at record levels, helping lift prices. Smallwood noted that Russia announced plans to accumulate silver in addition to other metals, and similar policies by other nations could strengthen demand.

He also highlighted a sharp increase in apparent Chinese demand for silver, rising more than 20 percent year over year, which cannot be explained solely by industrial consumption. Retail interest is returning as well, with many investors buying silver for the first time in years. If this continues and exchange traded fund demand grows, the market could see a favorable shift.

Given these factors, silver investors may be entering a unique opportunity.

Smallwood observed that the gold to silver ratio remains close to 90, a level rarely seen outside exceptional events such as the Gulf War period and the pandemic shutdowns of 2020. Historically, silver has seldom appeared this undervalued compared with gold.