Like gold, silver is benefitting from expectations that the Fed will loosen policy further next year.
Silver’s dual role enhances appeal
Markets are now pricing in two additional Fed rate reductions, a backdrop that tends to favour precious metals broadly.
Heightened geopolitical risks have strengthened silver’s appeal as a defensive asset alongside its precious metal cousin.
However, silver’s rally is not solely driven by safe-haven flows – the metal continues to enjoy robust industrial demand, particularly from fast-growing sectors such as solar energy, electric vehicles, and data centres that require silver’s unique properties.
Industrial demand provides structural support
This dual role as both a monetary and industrial metal provides silver with a unique structural advantage in the current environment.
Looking ahead, silver is on track for a near 135% gain in 2025, reflecting both cyclical tailwinds from monetary policy expectations and strong long-term fundamentals tied to the global energy transition and digital infrastructure buildout.
The industrial demand component distinguishes silver from gold, providing additional fundamental support beyond purely monetary factors.
Investment opportunities in precious metals
For investors looking to gain exposure to precious metals’ historic rally or hedge against policy and geopolitical risks, several approaches are available.
- Research precious metals market dynamics, monetary policy implications, and safe-haven investment strategies to understand current drivers.
- Consider how gold and silver exposure fits within portfolio diversification and risk management objectives.
- Open an account with IG by visiting our website and completing the application process.
- Access gold and silver markets through our platform, including spot prices and related securities.
- Implement appropriate position sizing given precious metals’ potential for both continued gains and sharp corrections.
Spread betting and CFD trading provide flexible approaches for trading precious metals.
For longer-term exposure, investment in precious metals funds or mining companies offers alternative approaches to direct commodity exposure.
With expectations of lower interest rates, persistent geopolitical uncertainty, and strong underlying demand, gold and silver remain well supported heading into 2026.