Silver Surpasses Gold as Top Precious Metal in 2025 Rally

As of Wednesday, August 27, 2025, the price of silver is showing a marginal decline from Tuesday’s levels, with the metal trading at $38.48 per ounce as of 8:20 a.m. Eastern Time [2]. This reflects a 0.54% drop compared to the previous day’s price of $38.69, though it still marks an over 28% increase from this time last year, when the price stood at $29.88 per ounce [2]. Over the past month, silver has seen a slight uptick of 0.94% compared to its price on July 26, 2025.

The recent rise in silver prices has been driven by a combination of factors. Industrial demand, particularly in sectors such as renewable energy and electronics, has seen a modest increase, contributing to upward pressure on the price. Additionally, investor sentiment has played a role, with silver being viewed as a hedge against inflation in an uncertain economic climate [2]. Analysts have noted that silver’s performance in 2025 has outpaced gold, with the price rising nearly 25% year-to-date [2]. This performance has led some to speculate that the metal could potentially reach record highs, though such predictions remain contingent on broader market and geopolitical conditions.

In comparison to other precious metals, silver has demonstrated higher volatility, particularly due to its dual role as both an investment asset and an industrial commodity. The spot price of silver, which reflects the real-time price for immediate delivery, is a key metric for investors. However, investors are advised that the actual purchase price often exceeds the spot rate due to markups, shipping, and insurance costs [2]. The bid-ask spread, another important measure, indicates the difference between the price at which silver can be bought and sold, with a narrower spread signaling higher demand and liquidity.

Currently, other precious metals are also in focus. Gold is trading at $3,378.66 per ounce, platinum at $1,338.45, and palladium at $1,089.52 [2]. These metals, like silver, are seen as safe-haven assets, though gold generally exhibits the least volatility among the group. Platinum and palladium are known to follow similar price dynamics to silver, with smaller market sizes amplifying their price movements [2].

For investors considering silver as part of a diversified portfolio, experts typically suggest allocating no more than 10-15% to the metal, with total exposure to precious metals capped at 20% [2]. Physical silver investments include bullion, coins, and jewelry, while ETFs and mining stocks offer alternative methods for exposure. Investors should also be aware of the differences between collectible and investment-grade silver, particularly in terms of purity and eligibility for inclusion in retirement accounts like IRAs [2].

The ongoing economic and geopolitical uncertainties have reinforced the appeal of precious metals as a means of preserving capital. With silver’s price continuing to rise in 2025, it remains a focal point for both institutional and retail investors seeking to hedge against inflation and market volatility. However, as with all investments, the decision to allocate funds to silver should be based on a careful evaluation of one’s financial goals and risk tolerance.

Source:

[1] Silver Price Charts and Historical Data - SilverPrice.org (https://silverprice.org/)

[2] Current price of silver as of Tuesday, August 26, 2025 (https://fortune.com/article/current-price-of-silver-08-26-2025/)

[3] Silver Price (https://goldprice.org/silver-price.html)