It’s not just gold (GC=F) notching a strong quarter as a potential government shutdown looms.
Silver futures (SI=F) are up 27% over the past three months, versus gold’s more than 15% rise, and roughly 58% year to date compared with the yellow metal’s 45%.
On Tuesday, gold futures held near record highs above $3,875 an ounce while silver futures traded around $46. The metal was within striking distance of its closing high of $48.70 — just north of $150 in today’s dollars — set in January 1980. That was during a famed silver squeeze, when the infamous Hunt brothers tried to corner the market.
“Silver is in a fundamental deficit with demand outstripping supply,” Sprott Asset Management senior portfolio manager Shree Kargutkar told Yahoo Finance. “This development is being picked up by investors who are adding to their holdings through ETFs (exchange-traded funds) as well as physical silver.”
Sprott remains bullish on the metal, highlighting its industrial demand across sectors, from electronics to medical applications.
Silver’s hockey stick rally comes as gold has dominated the spotlight this year, driven by expectations of Federal Reserve easing and robust foreign central bank demand, with holdings recently surpassing US Treasurys for the first time since 1996.
On Monday, Goldman Sachs analysts pointed to their bullishness on gold amid a “goldilocks regime” — not too hot, not too cold, in other words — for the broader market.
The analysts expect gold to reach $4,000 by mid-2026, though increased trades into the space “might create near-term more bumpiness.
Earlier this month, analysts at the firm said gold was their “highest-conviction long recommendation,” outlining an upside scenario of $5,000 by the end of next year amid rising concerns over Federal Reserve independence, as President Trump aims to place dovish governors at the central bank.
Along with gold and silver, precious metals palladium (PA=F) and platinum (PL=F) have rallied 44% and 79%, respectively, in 2025 amid a weaker greenback trend.
The US dollar index is down about 10% year to date, making commodities priced in dollars cheaper for buyers using other currencies
Barclays head of global asset allocation Nikola Vasiljevic recently noted that precious metals have historically been standout winners during periods of dollar weakness
“Data shows that this asset class has delivered real annualized returns of around 15% on average, and this is because they act as a direct hedge, being a traditional store of value,” Vasiljevic said.
