Silver's Remarkable Year
Silver prices have staged a dramatic rally over the past 12 months, surging approximately 148% from $33.86 per ounce in March 2025 to $83.97 as of Thursday morning. The white metal traded down $3.36 from the previous session as of 8:15 a.m. Eastern Time, representing a 3.84% decline from Wednesday's close of $87.33.
Despite the daily pullback, silver's year-over-year performance has been nothing short of extraordinary. The metal rallied nearly 25% in 2025 alone, climbing to decade-high territory before continuing its ascent into 2026. At its recent peak, silver touched $120 per ounce before retreating to current levels.
Gold Holds Above $5,100
Gold spot prices are trading around $5,108 to $5,133 per ounce, down roughly 1.25% on the day. The yellow metal crossed the historic $5,000 threshold in January 2026 and reached an all-time high of $5,589.38 before pulling back. Gold has still gained more than 100% over the past 12 months from approximately $2,624 per ounce.
The gold-silver ratio currently stands at 59.6:1, indicating silver has significantly outpaced gold's gains in relative terms.
Expert Outlook Remains Positive
Thomas Winmill, portfolio manager at Midas Funds, predicts gold will reach over $5,500 per ounce within the next one to two months. He cites central bank demand as a primary driver, noting that nations are actively diversifying away from dollar-denominated assets.
"Given the strength of the recent rally and positioning in the market, I would not be surprised to see a steep pullback in the near term," said Hiren Chandaria of Monetary Metals. However, he expects any corrections to be short-lived given the underlying fundamentals.
Darius Dale of 42 Macro points to a supportive macro backdrop for precious metals, with higher global liquidity and a softening dollar outlook driving continued upward momentum.
For silver specifically, James Cordier of OptionSpreakers.com suggests the metal should consolidate below $100 per ounce until new market fundamentals emerge following its recent "perfect-storm" rally.
Key Market Drivers
Several factors continue to support precious metals prices. Central banks maintained aggressive gold reserve building throughout 2025, fueling institutional demand. A softening U.S. dollar and rising expectations for Federal Reserve rate cuts have reinforced gold and silver's appeal as safe-haven assets.
Geopolitical tensions, including ongoing concerns in the Middle East around the Strait of Hormuz, have boosted physical buying interest by raising fears of prolonged inflation and supply disruptions.
Industrial demand for silver, particularly in green technologies including solar panels and electric vehicles, provides additional structural support for prices.
Investment Considerations
Major banks remain bullish on gold's trajectory. J.P. Morgan has set a price target of $6,300 per ounce, while Deutsche Bank projects $6,000.
Financial advisors generally recommend allocating no more than 5-10% of an investment portfolio to precious metals. Given silver's higher volatility compared to gold—a function of its thinner market structure—investors should be prepared for amplified price swings in both directions.
With both metals posting triple-digit gains over the past year, the precious metals complex appears to be in the midst of a historic bull run. Whether driven by central bank accumulation, geopolitical uncertainty, or expectations of easier monetary policy, gold and silver continue to attract investor interest in 2026.
Sources: Fortune, CBS News, Midas Funds, 42 Macro, Monetary Metals, OptionSpreakers.com