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Why is silver outperforming gold? What to know before you invest.
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Senior Writer
Mon, December 22, 2025 at 6:16 PM EST
3 min read
Gold and silver prices have reached new highs in December in response to a perfect storm of economic pressures and geopolitical tensions. Gold (GC=F) jumped to a record high of $4,480.60 per ounce on Monday, a more than 71% increase over the past year. However, silver futures have shown stronger gains, outpacing gold prices year to date.
The price of silver (SI=F) on Monday was up over 2% to a record $69.09, a 137% rise since the beginning of the year and an all-time high for the precious metal.
Experts say this could be tied to the unique relationship between the two metals.
“Historically during precious metal bull markets, silver lags gold and will then experience huge lifts, as we’re seeing [Monday],” said Steven Orrell, vice president and portfolio manager at Orrell Capital Management and the OCM Gold Fund. “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.”
Read more: What’s ahead for stocks and gold? What experts are watching in 2026.
Why silver prices may be surging faster than gold
Although prices for both metals are surging, silver is rapidly outperforming gold. When looking at the gold-silver ratio — the number of ounces of silver it takes to equal the price of one ounce of gold — the gap has narrowed quite a bit. In April of this year, that ratio was 104 to 1. Today, that margin is a lot smaller at 64 to 1.
Experts attribute the reason for silver prices outpacing gold to several potential contributing factors.
“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.”
Read more: How to invest in gold in 4 steps
What to know about investing in precious metals
Investors typically turn to alternative investments such as gold, silver, and palladium as a “hedge” against inflation and other economic uncertainty. When markets are volatile, these “safe haven” assets can help diversify investors’ portfolios because they react differently to economic conditions than stocks and bonds.
Silver differs slightly from gold in that it has both investing and industrial purposes, such as in electronics and solar panels, which can make the movement of silver prices more volatile than gold price fluctuations. Silver is also less liquid than gold, meaning gold is easier to sell for cash.
There are a few different ways you can go about investing in precious metals. This includes investing digitally in the form of precious metal basket funds, ETFs, futures contracts, and mining stocks.
Of course, you can also invest in a physical asset, such as jewelry, bars, and coins — although holding a physical asset means you’ll need to think about how to safely store it.
Ultimately, before deciding to invest in any new asset, consider your investment goals. If your aim is to diversify your portfolio or capitalize on today’s highs, it could be worth considering. However, it’s crucial to weigh your options carefully, understand the risks of investing for short-term gains, and only invest as much as you can afford to lose.
Read more: Gold alternatives? How to invest in silver, platinum, and palladium.