Gold and silver prices have reached record highs in December, driven by economic pressures and geopolitical tensions. Gold jumped to $4,480.60 per ounce on Monday, a 71% increase over the past year, while silver surged to $69.38 per ounce, a 138% rise since the beginning of 2025, outpacing gold’s gains.
Understanding Silver’s Recent Surge
Although both metals are rising, silver has recently outperformed gold. Steven Orrell, vice president and portfolio manager at Orrell Capital Management and the OCM Gold Fund, explains, “Historically, during precious metal bull markets, silver lags gold and will then experience huge lifts, as we’re seeing [Monday]. Over the last five years, silver has lagged gold performance up until this past month, where it has shot up dramatically. Its tie to gold as a precious metal is certainly a driver, considering gold has had a historic performance year,” according to a report by Yahoo Finance.
The Gold-Silver Ratio
One reason for silver’s outperformance is the narrowing gold-silver ratio, the number of ounces of silver it takes to equal one ounce of gold. In April 2025, the ratio was reportedly 104:1, while today it is 64:1. This significant narrowing signals that silver is catching up to gold after lagging for years.
Factors Driving Silver Prices
Experts point to several reasons for silver’s rapid rise. “On the investment side, as inflation expectations rise, more folks may buy silver alongside their gold. Silver is also known as ‘poor man’s gold’ as it’s a cheaper way to get exposed to precious metals and obtain more physical metal, despite the drastic price and scarcity difference,” Orrell said. “With interest rates being cut, investors may also see silver as a way to play the industrial angle as they expect companies to be able to finance more projects that would require silver’s conductive properties.”
Unlike gold, silver has both investment and industrial applications, such as in electronics and solar panels, which can make its price more volatile.
How To Invest In Precious Metals
Investors typically use gold and silver as a hedge against inflation and economic uncertainty. Safe-haven assets can diversify portfolios because they react differently from stocks and bonds. Investors can gain exposure through ETFs, basket funds, futures contracts, mining stocks, or physical assets such as coins, bars, and jewelry, though holding physical assets requires secure storage.
Before investing, consider your goals and risk tolerance. Silver’s industrial use and volatility can offer opportunities, but short-term gains carry risks. Experts advise only investing what you can afford to lose and carefully weighing options before buying.
