A few months back, I highlighted gold’s ascent amid a year defined by volatility. Today, I want to pivot to the asset that has arguably stolen the show. In this edition of the Twenty-Four, we examine what’s behind silver’s remarkable run.

Silver is often dismissed as the cheaper, more volatile relative of gold, but at US$77 an ounce (as of this morning) and a record rally of ~140% in 2025, it demands more attention. Although down from its December high of US$84, the precious metal has received a boost from the latest whirlwind of geopolitical events that have unfolded - most recently, the capture of Venezuelan President Maduro and Greenland annexation headlines. For context, an ounce of silver now costs more than a barrel of oil, a rarity we haven’t seen since 1980.

A safe haven asset

Like gold, silver is a safe haven asset, meaning it tends to attract investors in times of uncertainty and concern surrounding fiscal sustainability. It also benefits from lower interest rates (which reduces the opportunity cost of holding non-yielding assets) and a weaker U.S. dollar (silver is priced in U.S. dollars, a weaker greenback makes the metal cheaper for international buyers). Silver has also attracted investors who are increasingly reluctant to chase gold at its current record highs, leading to spillover demand into other precious metals.

A conductor - enabling electrification

But, perhaps most importantly, silver’s price is also determined by what happens on factory floors where it is used to make a wide variety of products including circuit boards, solar panels and medical supplies.

As such, silver occupies a unique position in global markets, straddling the line between monetary assets and industrial inputs. It is treated like a safe haven in periods of uncertainty, and it is simultaneously a critical physical resource for the modern economy. As the most conductive metal on Earth, silver is extensively utilized in electric vehicles, solar panels, and the infrastructure that underpins AI data centres.

A shortage of this critical metal

One of the main price drivers of silver is the narrative that there is a global shortage. According to the 2025 World Silver Survey, the market is now in its fifth consecutive year of structural supply deficits, with inventories at multi-decade lows. This imbalance is difficult to resolve, in large part because more than 70% of silver mining supply is a result of byproduct mining, meaning it is extracted as a byproduct of mining other metals like copper, gold, zinc, and lead. Currently Peru leads the world in silver reserves, but Mexico leads in production with China coming in second.

A strategic asset

Concurrently, governments are increasingly viewing key industrial metals through a strategic lens. Most recently, China, the world’s second largest exporter of the metal, has tightened controls on silver exports in 2026, citing national security. This recent action draws comparisons to the country’s earlier restrictions on rare earth minerals.

The bottom line

What sets silver apart in this cycle is that its strength is not purely speculative. It reflects a convergence of declining confidence in fiat currencies, structural supply constraints, and rising industrial demand. As we move into 2026, silver will be worth watching not only for what it says about investor sentiment but also what it reveals about where strategic resource policy is headed next.