Silver's Surge: A New Contender in the Race Against Gold

As of Thursday, September 18, 2025, the price of silver has risen to $41.87 per troy ounce at 8:15 a.m. Eastern Time, marking a 0.57% increase from the previous day and a 36.38% surge compared to its price from the same period in 2024. This upward movement places silver in a strong position relative to its historical performance, with year-to-date gains reaching 44.74% as reported by FXStreet. The price rise indicates increased investor confidence and demand, driven by a combination of economic and market dynamics.

Silver’s price is influenced by multiple factors, including supply constraints, industrial demand, and its role as a hedge against inflation. The industrial sector, particularly solar energy and electronics, has seen increased use of silver, which is the most electrically conductive metal. Additionally, the metal has gained attention as a store of value amid rising inflation and geopolitical uncertainties. However, its performance as an investment lags behind that of the broader stock market in the long term, according to historical data.

The gold-to-silver ratio, currently at 87.66, suggests that silver is relatively undervalued compared to gold. Analysts and industry experts have offered varying perspectives on whether silver will outperform gold in 2025. Some argue that silver’s lower price per ounce and greater growth potential, especially if it returns to its historical highs, could make it a more attractive investment than gold. Others, however, caution that gold remains the preferred safe-haven asset in times of economic and geopolitical uncertainty, suggesting a slower but steadier performance for the year.

The recent rally in silver prices is attributed to both investment demand and industrial applications. Limited supply and growing demand from multiple sectors are cited as key drivers of the upward trend. The metal’s affordability and accessibility to retail investors, along with its potential for higher returns, are additional factors that support its appeal. However, silver’s volatility—compared to gold—means that its price movements can be more erratic, influenced by factors such as the U.S. dollar’s strength and interest rates.

Investors considering silver as part of their portfolio often allocate between 10% and 15% to the metal, with some experts recommending an overall precious-metal exposure of up to 20%. The ability to hold silver through physical bullion, coins, or exchange-traded funds (ETFs) offers flexibility for different investment strategies. For those interested in retirement accounts, IRA-approved silver products are available, provided they meet the IRS’s purity and custodianship requirements.

Looking ahead, the market for both gold and silver remains dynamic. With gold prices near all-time highs and silver showing signs of catching up, the coming months will be critical for investors seeking to optimize their positions. Analysts continue to monitor the gold-to-silver ratio and global economic indicators, as these will likely shape the trajectory of both metals in the near term. The evolving landscape of industrial demand, geopolitical tensions, and inflationary pressures will play a significant role in determining the future performance of silver and gold in 2025.