This rise caps an extraordinary run for silver in 2025. Since the start of the year, when it was trading near $29 an ounce, the metal has risen more than 115%.With its latest rally, silver is now ahead of both Microsoft and Amazon, the latter valued at $2.46 trillion, but still behind Alphabet, which has a market cap of about $3.8 trillion.
In just a few months, silver has transformed from a stable commodity into one of the most valuable and closely watched assets in the world, redefining its global market leadership.
Renewed expectations of a Federal Reserve rate cut in December have boosted sentiment. Lower interest rates lower the opportunity cost of holding non-yielding assets like silver, making it more attractive to investors.
A key driver of this rally is the renewed expectation of a rate cut by the Federal Reserve in December. Lower interest rates lower the ‘opportunity cost’ of holding assets like silver that don’t generate returns, making them more attractive to investors looking for stability or protection against inflation. Hareesh V, Head of Commodity Reserach, Geojit Investments said, “The US Federal Reserve’s decision to cut key interest rates by 25 basis points to 3.50%-3.75% amid persistent inflation has strengthened bullish sentiment in precious metals. Lower interest rates lower the opportunity cost of holding non-performing assets like Gold and Silver are attracting new investment flows with Gold already at record highs, and this policy change adds momentum to the rally as investors look for safe havens amid economic uncertainty and inflationary pressures.
Furthermore, the weakening of the US dollar following the downgrade further supports gold and silver prices as a softer dollar makes these metals more affordable to global buyers. The sharp rally in precious metals is supported by structural supply shortages, robust industrial demand for silver, and continued ETF inflows. Technical breakouts above long-standing resistance levels have increased buying interest, while geopolitical risks and inflation hedging continue to fuel the optimistic long-term outlook despite near-term volatility.”
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