Silver exchange-traded funds closed 2025 as some of the strongest performers in global markets. Prices of silver-linked ETFs rose more than 100 percent over the year, clearly beating gold ETFs, which also posted strong but lower gains. Market data showed silver climbing between 130 percent and 150 percent year on year, depending on the measurement period. TradingEconomics reported a gain of about 145.6 percent over the latest 12-month window, while other market trackers placed the rise near 138 percent. Gold, by comparison, gained roughly 70 to 80 percent during the same period.
At the start of January 2026, spot silver traded around the low $70 range per ounce, with prices hovering near $72 to $73. Major silver ETFs traded slightly lower because of fund structures and expenses, with prices mostly in the mid-$60s to high-$60s range. These levels marked multi-year highs and capped one of the most dramatic rallies in the precious metals space in decades.
Several factors pushed silver far ahead of gold in 2025. Expectations of easier monetary policy played a major role. Investors anticipated interest rate cuts from the US Federal Reserve as inflation pressures cooled and growth risks increased. Lower rate expectations reduced the appeal of interest-bearing assets and increased demand for precious metals. A softer US dollar added further support and amplified price gains.
Silver also benefited from the structure of its market. The global silver market remains much smaller and less liquid than the gold market. When large investors moved money into silver ETFs, prices reacted faster and more sharply. Gold absorbed similar flows with less dramatic price changes because of its deeper and more liquid market.
Industrial demand strengthened silver’s appeal. Unlike gold, silver serves as both a precious metal and an industrial metal. Manufacturers use silver in electronics, solar panels, electric vehicles, and medical equipment. Demand from the renewable energy sector remained strong through 2025, especially from solar power installations. At the same time, mine supply growth stayed limited. Several industry reports pointed to ongoing supply deficits and declining inventories in exchange-monitored warehouses, which added pressure on prices.
Silver ETFs played a central role in turning price gains into triple-digit returns for investors. Physically backed ETFs allowed large investors to buy silver exposure quickly without dealing with storage or logistics. As prices began to rise, more money flowed into these funds, creating a powerful feedback loop. Rising ETF holdings tightened available supply in the spot market and pushed prices even higher.
Large funds such as iShares Silver Trust and abrdn Physical Silver Shares ETF reflected the full impact of the rally. These ETFs traded near multi-year highs by late December 2025. Strong daily volumes and increased options activity showed heavy participation from both retail and institutional investors. Analysts noted that even modest inflows produced outsized price moves because of silver’s smaller market size.
The speed of silver’s rise brought sharp volatility. Price swings became larger and more frequent than those seen in gold. Options markets recorded higher implied volatility, and trading volumes surged during both rallies and pullbacks. Short squeezes and margin-related liquidations added to sudden intraday moves, especially during the final quarter of 2025.
Silver’s history explains this behavior. Silver usually moves more aggressively than gold during both rallies and corrections. Economic optimism often boosts silver more than gold because of its industrial use, while economic stress can trigger steeper sell-offs. Market participants saw several sharp weekly swings during 2025, reminding investors that higher returns came with higher risk.
Central bank policy shaped much of the precious metals narrative. Investors closely watched signals from the Federal Reserve about future rate cuts. Expectations of looser policy supported silver and gold throughout the year. Any shift toward a more hawkish stance caused brief pullbacks, while dovish signals triggered renewed buying.
Geopolitical uncertainty also supported demand. Ongoing conflicts, trade tensions, and concerns about global growth encouraged investors to hold precious metals as a hedge. Central banks in several regions continued efforts to diversify reserves, which supported the broader metals complex, even though gold remained the primary reserve asset.
The outlook for 2026 presents several possible paths. Many analysts expect a period of consolidation after such a steep rise. Prices could move within a broad range, roughly between $60 and $80 per ounce, as markets digest gains and speculative interest cools. Elevated volatility likely remains a feature of silver trading.
Further gains remain possible if central banks deliver rate cuts faster than expected and the US dollar weakens further. In that scenario, silver ETFs could attract fresh inflows, and silver could once again outperform gold on a percentage basis. Strong industrial demand from clean energy projects would add support.
Risks also remain clear. A sudden strengthening of the dollar, a delay in rate cuts, or a slowdown in industrial demand could trigger sharp corrections. Silver’s smaller market means prices can fall as quickly as they rise. Advisors continue to stress disciplined positioning and awareness of drawdown risk when dealing with silver-linked investments.
Silver ETFs delivered one of the most striking market performances of 2025, with triple-digit gains that clearly outpaced gold. Supportive monetary expectations, strong ETF inflows, and resilient industrial demand combined to drive prices to multi-year highs. As 2026 begins, silver stands at a crossroads between consolidation and continuation. High volatility will likely remain the defining feature, while central bank policy and global growth trends will shape the next phase of this powerful rally.