Silver declines 6% by the end of 2025 despite the best annual performance in its history

Silver prices fell more than 6% on Wednesday, coinciding with the last trading day of 2025, as investors took profits after a strong year-long rally.

Despite the decline, the white metal managed to record its best year ever, with its price rising more than 160% since the beginning of 2025, clearly outperforming gold and other precious metals.

Silver records historic milestones in 2025

Silver has made several historic gains this year, supported by a number of strong fundamentals, most notably:

• Silver's designation as a critical metal in the U.S.
• Continued supply constraints and global tightness.
• Low levels of inventories.
• Rising industrial demand, especially in the renewable energy and technology sectors.
• Increased investment demand from individuals and institutions: Silver-backed exchange-traded funds (ETFs) have seen huge investment inflows.

• Supportive macroeconomic environment: Expectations of an interest rate cut by the US Federal Reserve, a weaker dollar, and geopolitical tensions have increased silver's appeal as a safe haven and inflation hedge.

Together, these factors have pushed silver prices to record highs.

Corrective pullback by the end of the year

The price of silver fell more than 5% to around $72 per ounce on Wednesday, retreating from the year's highs, as investors took year-end profits after big gains.

Analysts see this pullback as a normal short-term corrective move, and does not reflect a weakening of the metal's long-term uptrend.

Silver Price Forecast in 2026

The outlook is for continued strong support for silver prices through 2026, driven by several key factors, including:

- Continued interest from retail and institutional investors.

- The growing strategic importance of silver globally.

- Strong industrial demand with the shift towards clean energy.

- Expectations of further monetary easing by the US Federal Reserve.

- Geopolitical tensions in several regions across the world.  

Experts expect silver to return to the upward trajectory after the current correction is over, as the supporting fundamentals remain strong in the medium and long term.

In the end, despite the recent pullback, 2025 remains a historic year for silver prices, as the white metal proved its status as one of the best-performing investment assets during the year, with positive expectations for continued bullish momentum in the coming period.