Core Insights - Silver emerged as one of the strongest-performing major assets in 2025, significantly outperforming gold and Bitcoin, driven by macroeconomic shifts, industrial demand, and geopolitical pressures that may continue into 2026 [1] Performance Overview - By late December 2025, silver traded near $71 per ounce, reflecting a more than 120% year-to-date increase, while gold rose approximately 60% and Bitcoin ended the year slightly lower after a volatile period [2] - Silver's price started 2025 near $29 per ounce and saw steady growth throughout the year, with accelerated gains in the second half due to widening supply deficits and stronger-than-expected industrial demand [2] Comparative Analysis - Gold also experienced a strong rally, increasing from around $2,800 to above $4,400 per ounce, supported by falling real yields and central bank demand [3] - Silver outperformed gold by a significant margin, consistent with its historical tendency to amplify precious metal cycles [4] - Bitcoin's trajectory was different, peaking at nearly $126,000 in early October before declining to around $87,000 by December, failing to maintain safe-haven inflows during late-year risk-off movements [5] Macroeconomic Factors - Several macroeconomic conditions favored hard assets like silver in 2025, including a shift toward easing monetary policy, with the US Federal Reserve implementing multiple rate cuts, which lowered real yields and weakened the dollar [6] - Ongoing inflation concerns contributed to a favorable environment for tangible assets, particularly those with both monetary and industrial value [6] Industrial Demand - Unlike gold, silver benefits directly from economic expansion, with its dual role as both an investment and an industrial metal proving crucial in 2025 [7] - The rally in silver prices was increasingly supported by physical demand rather than investment flows, with industrial usage accounting for approximately half of total silver consumption, a share that continues to grow [8]