Silver closed the week of December 26, 2025 at $79.32, rising 18.1% from $67.16.
Consequently, it achieved the best Christmas week on record, surpassing July 2020’s 17.8% surge.
Silver’s Record-Breaking Week
Throughout 2025, silver climbed over 174%, with nine of eleven months ending higher.
Meanwhile, gold also gained 72.7% year-to-date, but silver clearly outperformed the precious metal.
Technical Breakthrough Drives Rally
When silver broke $50 per ounce, traders launched a strong rally, overcoming a historic resistance level.
In mid-October, silver briefly climbed above $50, closing at $51.86, before investors awaited a pullback.
Then, a November breakthrough sparked a five-week winning streak, continuing through late December.
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Moreover, technical traders cited momentum and support from previous resistance levels as rally drivers.
Industrial Demand Fuels Growth
Strong industrial demand drove silver, particularly from electric vehicles, solar, and AI data centres.
At the same time, tighter supply and expectations of US interest rate cuts encouraged investor interest.
UBS analyst Giovanni Staunovo explained that lower rates actively lifted gold and silver to new highs.
Furthermore, traders expect the US Federal Reserve to cut rates twice in 2026.
Additionally, calls for looser US policy motivated demand for non-yielding precious metals.
Industrial consumption reached 680.5 million ounces in 2024, marking a fourth consecutive annual record.
Growth came from green energy, vehicle electrification, and AI-related consumer electronics.
Global silver demand exceeded supply for the fourth year, producing a 148.9 million-ounce deficit.
From 2021–2024, cumulative deficits reached 678 million ounces, equal to ten months of mine production.
Consequently, tight supply and strong investor demand propelled silver’s remarkable 2025 rally.
Overall, silver’s rise highlights industrial importance, scarcity, and investor appeal, establishing it as 2025’s standout performer.
