Silver Hits $60 for the First Time—Why It’s Rising Faster Than Gold
Silver prices hit a new high on Tuesday, breaking the $60 mark for the first time. This year, silver has grown faster than gold due to tight global supplies and expectations that the U.S. Federal Reserve may lower interest rates again.
Silver’s Recent Surge
On Tuesday, spot silver rose about 4% to roughly $60.82 per troy ounce on New York’s Commodity Exchange. Silver futures jumped more than 4% to nearly $61, even touching $61.06 earlier in the day. Traders are betting that the Federal Reserve will cut interest rates by a quarter-point this week, lowering them to between 3.5% and 3.75%. Lower interest rates often make precious metals more valuable because they weaken the U.S. dollar.
The U.S. dollar index has already dropped 8.5% this year, including a 0.5% decline in the last month. A weaker dollar usually makes silver cheaper for buyers using other currencies, boosting demand.
Why Silver Is in Focus
In November, the U.S. Geological Survey listed silver as a critical mineral, showing it is “essential” to the U.S. economy. This designation signals potential supply risks and possible tariffs on silver. Global inventories are shrinking. In London, a major trading hub, silver supply disappeared earlier this year. Anant Jatia, chief investment officer at Greenland Investment Management, told Bloomberg that in October, there was “no liquidity available” for silver, calling the situation “entirely unprecedented.”
Big Gains Compared to Gold
Silver has risen nearly 109% this year, outpacing gold, which has gained around 60%. Spot gold increased just 0.4% over the last day to about $4,226 per ounce, after reaching a record high above $4,381 in October. Platinum has also performed strongly, rising 86%, helped by growing demand for electric vehicles and falling global supply.
A Note of Caution
Even though silver has had a record-breaking year, some experts say gold remains the safer investment. Goldman Sachs warned that silver could be more volatile and face bigger price drops, while gold remains more stable because of strong demand from central banks and its scarcity.
The Bigger Picture
Gold and other precious metals have been boosted this year by economic uncertainty and unpredictable policies. Gold has passed key milestones, breaking $3,000 in March and $4,000 in October, while silver has set a new record above $60, far surpassing the previous high of $49.95 set in January 1980.
The silver and gold rallies have been accompanied by large sell-offs at times. For example, gold futures dropped more than 5% after hitting an all-time high in October. Analysts say that the “universe of investors” interested in precious metals has grown quickly in 2025, pushing prices higher.
In short, silver is shining brighter than gold this year due to limited supply, a weaker dollar, and expectations of lower interest rates. While gold may remain the more stable option, investors are increasingly turning to silver for its impressive gains.
Published: 11th December 2025
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