Silver could have a strong chance to outperform gold in the second half of 2025, and there are several reasons why this might happen.
First, silver is unique because it serves two important roles: it is both a precious metal like gold and an industrial metal used in many technologies. This dual nature means silver can benefit from safe-haven demand during uncertain times as well as increased industrial use when the economy picks up. For example, silver is crucial for manufacturing solar panels and various electronic devices because it’s the best conductor of electricity. As industries invest more in green energy and electrification, silver’s industrial demand could rise significantly.
Bank of America recently raised its forecast for silver prices to $40 per ounce by late 2025 or early 2026, while also predicting gold will reach around $4,000 per ounce. Their analysts highlight that although gold often grabs headlines as a store of value during economic uncertainty, silver’s combination of monetary appeal and essential industrial uses makes it particularly attractive right now.
Recent geopolitical tensions such as conflicts involving Ukraine and ongoing trade disputes between major economies have caused investors to seek safe havens. Silver has responded strongly to these events with notable price rallies because it offers protection against risks like war-related instability and commodity price spikes caused by tariffs.
Meanwhile, gold remains steady but faces resistance near certain price levels that may limit its upside potential in the short term. Silver appears poised for a breakout above key resistance points if inflation data or central bank policies signal continued economic challenges or recovery phases that boost manufacturing activity.
In summary, while both metals are expected to rise through 2025 due to global uncertainties and inflation concerns, silver’s special position at the intersection of investment demand and growing industrial needs gives it an edge that could see it outperform gold during the latter half of this year.