The 2025 precious metals market can be summed up in one phrase — a continuous clash between madness and rationality. Spot gold surged by 65% throughout the year, breaking records more than 50 times, with a high of $4,550 per ounce at one point, and closing at $4,318.65. Silver's performance was even more outrageous, with an annual increase of 150%, reaching a historical high of $83. Even after a 6% correction at the end of the year, it was enough to rewrite the market's understanding of its value. Behind this wave of market activity, in simple terms, is a multi-faceted resonance of macro cycles, industrial transformation, and capital forces. For ordinary investors like us, instead of blindly chasing the rally, it's better to understand where the market is actually headed.

**Why is gold so strong? Central bank buying is the key**

The strength of gold in 2025 is fundamentally not a game of capital speculation, but a reflection of real changes in the global economic landscape. The logic supporting gold prices is quite clear, mainly including these points —

First, the de-dollarization trend worldwide is accelerating. Data shows that by October 2025, gold's share in global central bank reserves has risen to 30%, while the dollar's share has fallen to 40%. Central banks around the world purchased over 1,000 tons of gold last year alone, with China’s central bank continuously increasing holdings for 12 months, and emerging market countries like Poland and Turkey also accelerating their allocations. In simple terms, countries are treating gold as a "safe haven" to hedge against currency risks. This structural increase in gold holdings directly absorbs selling pressure in the market and provides a solid foundation for gold prices.

The 150% surge in silver is not without reason. As a commodity used both industrially and for investment, silver has demonstrated resilience far beyond expectations under the dual drivers of industrial upgrading and capital attention. When central banks and institutional investors are all positioning in safe-haven assets, silver, as a "partner" of gold, naturally follows the trend and rises.