Silver's Resurgence: Outperforming Bitcoin and Traditional Assets Amid Shifting Monetary Policy

In 2025, the investment landscape has witnessed a dramatic reallocation of capital toward tangible assets, with silver emerging as a standout performer. Year-to-date, silver has surged by approximately 95%, outpacing gold's 60% gain and the S&P 500's 16% rise. Meanwhile, Bitcoin has buckled under pressure, falling 3% in 2025 while the S&P 500 climbed. This divergence marks a pivotal shift in investor priorities, as artificial intelligence stocks and industrial metals like silver capture momentum once dominated by cryptocurrencies.

The Case for Silver: Industrial Demand and Monetary Skepticism

Silver's meteoric rise is driven by a confluence of factors. Industrial demand remains robust, particularly in the solar industry, where new solar cell designs require significantly more silver per unit. Simultaneously, shrinking global inventories have exacerbated supply constraints. A recent trading halt on the Comex silver futures market revealed a critical shortage of physical silver, sending prices to a record $56.72 per ounce.

Economist Peter Schiff has been a vocal advocate for silver, arguing that the market's rejection of Federal Reserve policies is fueling demand for tangible assets. "The Fed's return to quantitative easing and rate cuts has eroded confidence in fiat currencies," Schiff explains, noting that rising Treasury yields and silver prices are symptoms of the same underlying distrust. This dynamic is particularly evident in silver's technical performance: a steady rally marked by higher highs and lows, devoid of the sharp speculative spikes seen in crypto markets.

Bitcoin's Weakening Value in a Silver-Centric World

Bitcoin's underperformance has been stark when measured against silver. The silver-to-bitcoin ratio-a metric comparing the amount of silver needed to buy one bitcoin-has plummeted to 1,458 ounces per bitcoin, the lowest since October 2023. This reflects a sharp divergence in performance: while silver rose 53% since August 2025, Bitcoin dropped 27% in the same period.

The weakening of Bitcoin in silver terms underscores a broader trend. As central banks grapple with inflationary pressures and financial instability, investors are increasingly favoring assets with intrinsic value. Silver ETF holdings have surged by 15.7 million ounces in November alone, with inflows recorded in 9 of the past 11 months. In contrast, Bitcoin's appeal has waned, with Schiff and others arguing that "real money"-gold and silver-is gaining ground as confidence erodes.

Resilience Amid Rising Yields and Inflation

Silver's outperformance has persisted even as Treasury yields climb, a development often linked to inflationary expectations or tighter financial conditions. . Schiff interprets this as a rejection of the Fed's accommodative policies, which he claims are fostering instability rather than easing economic stress. The simultaneous rise in silver and yields suggests investors are hedging against both inflation and the potential collapse of fiat-backed systems.

This reallocation is not merely speculative. Silver's industrial applications-particularly in renewable energy-provide a dual tailwind. As the world transitions to greener technologies, demand for silver is expected to grow, reinforcing its role as both a monetary and industrial asset.

Conclusion: A New Paradigm for Hard Assets

The 2025 market environment highlights a fundamental shift in how investors perceive value. Silver's outperformance over Bitcoin and traditional assets reflects a growing skepticism toward centralized financial systems and a renewed appetite for tangible stores of value. As Peter Schiff notes, this trend is unlikely to reverse unless monetary policy undergoes a dramatic overhaul. For now, the data suggests that hard assets-especially silver-are winning the battle for capital in an era of uncertainty.