Gold, silver, and copper prices reached new heights in 2025, driven by a combination of structural supply deficits, robust demand from industrial and monetary sectors, and a shifting geopolitical landscape that has traders prioritizing tangible assets.
"This looks like the start of a new regime — one defined by structurally higher prices in an over-indebted world where inflation remains the path of least resistance for policymakers," Tavi Costa of Crescat Capital said in a post on X.
The year saw gold climb 69% to $4,331.90 an ounce, while silver more than doubled that with a 157% surge to $72.25 an ounce, according to data from the end of December. Copper also hit a record high of $5.86 per pound during the year, finishing up 42% at $5.52. The moves have fueled a frenzy of acquisition activity as major miners opt to buy rather than build new capacity.
The rally reflects a world marked by scarcity and an investor desire for assets with limited supply, according to Kyle Rodda, a senior financial market analyst at Capital. This has pushed capital into real assets as confidence in government currencies and supply chains wanes.
Gold's Monetary Renaissance
Central bank buying and a move by BRICS nations to de-dollarize trade have been significant drivers for gold. Central banks purchased over 1,000 tonnes of gold annually from 2022 to 2024, with the BRICS+ bloc launching a pilot for a gold-anchored trade settlement "Unit" in October 2025. The alliance, which includes major producers Russia and China, now controls approximately 50% of global gold production and holds over 6,000 tonnes in official reserves.
"For BRICS countries, gold is a tool to protect against sanction risks, a response to the unreliability of traditional partners, and a tangible asset recognised for thousands of years,” said Russian economist Yevgeny Biryukov. This shift from gold as a passive reserve to an active trade asset is expected to create consistent buying pressure.
Silver's Dual Demand
Silver's rally to a record $83.62 on December 28 was underpinned by its fifth consecutive year of a supply deficit, with mine production unable to meet demand from both industrial and investment sectors. China, the world's second-largest silver producer, announced it would restrict exports starting in 2026, further tightening the market.
The metal's dual role as an industrial commodity and a monetary asset was evident in futures trading. The trading volume ratio between gold and silver on the COMEX exchange compressed from a historical 3:1 to nearly 1.4:1, signaling a fundamental shift in market structure, according to Kitco analyst Gary Wagner. The gold-silver ratio itself fell to 59 from a peak of 108, with some analysts forecasting a potential move to $100 per ounce for silver in 2026.
Copper's Electrified Future
Copper's ascent to a record $5.86 per pound was fueled by fears of global shortages amid persistent supply disruptions and surging demand from electrification and data centers. The global copper market is projected to face a deficit of 590,000 tons in 2026, the most severe in 22 years, potentially widening to 1.1 million tons by 2029, according to Morgan Stanley.
Demand from the artificial intelligence boom is a significant new factor. Hyperscale data centers required for AI can use up to 50,000 tons of copper per facility. JPMorgan estimates this could translate into a 30% increase in copper demand from data centers in the coming year. This demand is largely price-inelastic, as copper accounts for only 0.5% of a data center's total project cost, according to Wood Mackenzie.
The supply side remains constrained by a lack of new discoveries and the rising cost of building new mines, which has climbed 65% since 2020 in Latin America. This has led to a surge in M&A, including the $53 billion merger of Anglo American and Teck Resources, as companies seek to acquire reserves rather than develop them.
This article is for informational purposes only and does not constitute investment advice.
