Silver price kicks-off 2025 strong as analyst debates growth potential to gold
Silver price dynamics
Silver kicked off 2025 with a promising start, gaining 1.8% in the first trading session of the year to trade at $29.28.
This precedes a turbulent end to 2024, where prices fell from a decade-high of $35 per troy ounce in October to a three-month low of $28.75 in December. As the metal stabilizes in the new year, analysts are debating whether silver holds greater growth potential compared to gold, especially given its historical performance and current price trajectory.
In 2024, silver rose by an impressive 21%, peaking at $35 per troy ounce in October, its highest level in over a decade. This surge was followed by a sharp decline in the fourth quarter, culminating in a double bottom at $28.75 in December. Despite this setback, silver’s rally on January 2 hints at renewed investor interest, albeit with caution, as technical indicators suggest the upward momentum may face immediate challenges. The Relative Strength Index (RSI) on the hourly chart has entered the overbought territory, signaling the potential for a short-term pullback.
Silver price dynamics (2010-2025). Source: TradingView.
Silver 2025 outlook: Poised to reach $50 again after promising startWhile gold continues to attract investors, some experts argue that silver offers greater upside potential. Daniel Boston, founder of Preserve Gold, notes that while gold’s all-time high was surpassed in 2024, silver’s record of nearly $50 per ounce, set in 2011, remains a distant target. With silver currently trading significantly below this historical peak, Boston believes it has room for substantial growth, potentially outpacing gold in percentage terms over the coming year.
Silver’s performance in early 2025 will be crucial in determining whether it can sustain its upward trajectory or encounter resistance at key levels. Key resistance remains at $29.65, a level traders are closely monitoring for further price movement. For now, its relative affordability compared to gold and its historical growth potential position silver as a compelling option for investors seeking higher returns in the precious metals market.
Uncertainties over industrial demand, particularly from China’s solar panel sector, had dampened silver price potential. Its price range was confined to a narrow range of $29.40 to $29.86 for five days.
