Silver Investment Boom in 2025: Why Did the Silver Price Surge Over 120% in Just One or Two Months? 5 Ways to Teach You How to Amplify Returns with Small Money

The recent surge in silver prices has been explosive, with gains exceeding 120% since the beginning of the year, far surpassing gold. Many people are asking: How much is an ounce of silver? Why has silver risen more fiercely than gold? Can we still enter the market this year? This article helps you clarify all these questions.

Why can silver surpass gold? Three core advantages

First: Industrial demand is the driving force

Don’t just see silver as a precious metal; its identity is more complex—it’s an essential component for AI chips, solar panels, electric vehicles, and 5G base stations. By 2025, green energy transformation will accelerate, and large-scale expansion of AI data centers worldwide will increase silver usage by over 20% year-on-year. This is an advantage gold doesn’t have; pure safe-haven gold cannot match the industrial demand-supported silver.

Second: Low price threshold, large room for appreciation

How much is an ounce of silver? Currently about $65 per ounce. Compared to gold, which often costs $2000 per ounce, silver is in a different league in terms of affordability. Because of the low base, a similar percentage reduction in supply can translate into a larger price increase. Historical data shows that when gold rises 60%, silver often gains over 150%.

Third: Gold-silver correlation, obvious complementarity effect

The current gold-silver ratio is about 66:1, close to the historical low compared to the past 80:1. This indicates that silver is undervalued relative to gold, and the market is re-pricing. Every time the gold-silver ratio drops from a high level, silver experiences a wave of catch-up gains. This wave, this year, has seen silver fluctuate 1.5-2 times more than gold.

Four reasons for silver price surge in 2025

Reason 1: Tight supply side

The silver market has experienced supply deficits for five consecutive years, with a cumulative shortfall exceeding 800 million ounces. Mining growth is far below demand growth, and inventories continue to decline. This fundamental supports the silver price rising from $22 to $65 since the beginning of the year.

Reason 2: Strong recovery in the electronics industry

From H100 to the latest AI chips, silver usage has increased about 20% compared to traditional chips. Solar energy, electric vehicles, data centers—these key players in 2025 all rely on silver. The industrial boom directly boosts rigid demand for silver.

Reason 3: Rising risk aversion sentiment

Global economic uncertainties and geopolitical risks are increasing, prompting investors to flock into precious metals for safe-haven. Several governments have listed silver as a key mineral, elevating its safe-haven attribute from simple inflation hedge to “supply chain risk resistance.”

Reason 4: Weakening US dollar as a catalyst

The Fed’s rate cut cycle in 2025 is established, and the US dollar index is softening. Precious metals priced in USD will accordingly rise. This wave of silver surpassing $65 to hit a ten-year high is largely due to dollar depreciation.

Five practical investment methods for silver comparison

1. Physical Silver: Strong tactile experience but difficult to liquidate

Buying silver bars, coins, or jewelry is the most direct way—feeling the real silver. The problem is high costs and difficulty in liquidation. When buying at banks or jewelry stores, you bear the spread; when selling, you get hit with a spread again. For genuine investment, physical silver is not the best choice; it’s more suitable for collectors.

2. Silver Account: Convenient but not cheap

Available at major banks, they help you store silver, avoiding physical storage hassles. But regular fixed-amount operations still incur costs, suitable for investors planning long-term holding and infrequent trading. If you want to swing trade, each buy/sell eats into profits through spreads, severely impacting returns.

3. Silver ETF/Stocks: Good liquidity but limited leverage

Silver ETFs like SLV or related stocks like PAAS have good liquidity, with trading costs close to stock fees, making entry and exit easy. The downside is no leverage; $1 invested only equals $1 exposure. To amplify gains, you need leverage. Suitable for steady investors building positions regularly.

( 4. Silver Futures: Most liquid but with settlement date constraints

Silver futures on CME ()SI###) have hundreds of thousands of contracts traded daily, nearly 23 hours a day, with flexible long and short positions. The downside is monthly settlement and rollover requirements; at expiration, delivery or rollover is mandatory. Operating costs and complexity are higher. Suitable for experienced short- to medium-term traders.

( 5. Silver CFD: High leverage, maximum flexibility

CFD trading is similar to futures but with higher leverage and no settlement date restrictions, allowing indefinite positions. Platforms usually include built-in stop-loss, take-profit, and trailing stop functions, making risk control easier. The same leverage risk applies—profits are magnified when prices go up, but losses are also amplified when prices fall. Best suited for short-term swing trading with strong risk tolerance.

How to amplify profits with small capital? Three practical tips

Tip 1: Choose appropriate leverage multiples

Don’t exceed 5x leverage in CFD trading; extreme leverage over 100x is from margin. For example, with silver at $65 and $500 invested, using 5x leverage controls a $2,500 position. If silver rises to $68, you earn $150, a 30% return. Risk management is always more important than chasing high returns.

Tip 2: Set three-tier stop-loss and take-profit

Before entering, calculate risk-reward ratio. Suppose entry at $65, set stop-loss at $63 (risk $2/oz), take-profit at $68 (reward $3/oz). Trailing stops can automatically adjust as prices rise, locking in partial profits.

Tip 3: Combine technical and fundamental analysis

Observe RSI, MACD for turning points, monitor gold trends as leading indicators. When the gold-silver ratio exceeds 100, silver is undervalued with larger rebound potential. Combine with USD index, interest rate expectations, and other fundamentals for clearer entry and exit signals.

) Actual profit comparison case

No leverage holding

• Capital: $6,500 to buy 500 oz
• Entry: $65, exit: $68
• Profit: $1,500
• Return: 23%

CFD 5x leverage trading

• Capital: $1,300 (controlling $6,500 position)
• Entry: $65, exit: $68
• Profit: $1,500
• Return: 115%

In the same market condition, leverage trading yields a return 5 times that of traditional holding. But when losing, the loss is also magnified 5 times. That’s why risk control is crucial.

When is the best time to enter?

Trading hours

Taiwan time 8 PM to 2 AM (overlap of European and American markets) has the highest volume and most volatility. Signals are clearest during this period, ideal for short-term trading. If only able to trade during Asian hours, volatility is relatively calmer, suitable for long-term positions.

Entry signal judgment

• When the gold-silver ratio exceeds 100, silver is undervalued with large rebound potential
• When gold hits new highs but silver lags, a catch-up rally may occur
• When USD index weakens and non-farm payrolls beat expectations, risk assets rebound, and silver gains favor
• When RSI enters oversold territory (below 30) with confirmed bottom, short-term rebound is likely

Final advice: More capital doesn’t mean more profit

Silver indeed tends to rise more than gold, but its volatility is also greater. Since the start of the year, it’s up 120%, but it could also fall back 15-20% in a short period. True profit-making is never about the size of capital but about understanding the tools and disciplined execution.

The silver price per ounce doesn’t matter; what matters is your understanding of the supply-demand logic behind silver, mastering entry timing, and setting proper risk controls. Even with only $1,000, with correct leverage and operation, you can achieve profit goals. Conversely, more capital only increases risk absorption.

Choose the investment method that suits you, stick to risk control discipline, and the opportunity for a silver bull market in 2025 remains.