A difficult choice

Will 2026 be like 2025? Last year gold went up by more than 65% in 2025, while silver rose by more than 150%. Fortunately Glint added silver to its platform in December 2024, a year in which the silver price rose by almost 35%. Glint members can trade the two leading precious metals, at a time when both have reached record prices.

So, will 2026 see even higher prices? If the first two weeks of January are any guide, then fresh records are a certainty. In the first three weeks of this year gold has gained 11% and the silver price has risen by 30%, roughly the price rise for the whole of 2024.

Inevitably, analysts are competing with one another in projecting fresh records. Silver is now more than $90/oz and some forecasts see it beating $300/oz this year. With gold now nudging $5,000/oz, it might be that those wishing to get some precious metal exposure will select silver instead. Silver's former peak price, almost $50/oz in January 1980, is unlikely to ever be seen again.

Underlying silver and gold's price rises are geopolitical tensions and all kinds of global conflicts. But silver has one advantage that gold lacks - silver is the new 'green metal'. The biggest demand for silver is industrial and that demand source will only grow, as the 'green' revolution speeds on.

The 'Green Metal'

The 'green' energy revolution is barely started but silver will be one of its biggest beneficiaries. The universal rejection of fossil fuels is driving demand for silver.

The reason for this is simple - silver has the highest electrical conductivity of any metal. That makes it an essential ingredient for photovoltaic cells, panels of which convert sunlight into electricity. Some analyses suggest that silver consumption for solar technology represented 14% of world silver demand in 2025, up from just 5% a decade earlier. By 2050, around 90% of global silver reserves will be consumed by solar technology.

Silver is also vital for electric vehicles. Traditional internal combustion engines use silver too, but EVs require at least twice as much silver per vehicle. Automotive silver demand has risen from around 61 million ounces in 2021 to more than 80 million ounces now.

Industrial uses for silver now account for more than half of annual global demand. As the 'green' revolution marches ahead, the demand for silver will keep pace.

Supply tightens

Silver's price jump, unlike gold's, has not been caused by investor anxieties but is a logical response to structural supply shortfalls.

In the years preceding 2021 the global silver market was dominated by regular annual modest surpluses. In 2021 that abruptly changed and that year the silver market was short of some 90 million ounces. By 2022 that shortfall had exploded to 272 million ounces. Current estimates are that 2025 saw a global deficit of 95 million ounces. Silver inventories at the large exchanges have fallen by 26% since 2021, as large volumes of physical silver have been gobbled up.

The silver price has shot up in response. While it averaged about $15-$17/ounce between 2015 and 2019, it surpassed $80/ounce in 2025.

Many countries produce silver, with Mexico occupying the lead position, with 6,300 tonnes/year. China is the world's second biggest producer, with 3,300 tonnes. At the end of 2025 China introduced new policies restricting silver exports, formally elevating the metal from an ordinary commodity to a strategic material. "This is not good," commented Elon Musk on his social media platform X. He added, "Silver is needed in many industrial processes." Not least many of his most significant businesses.

The two metals

With gold much of the price rise is opaque - demand by investors and central banks is difficult to track and often is not known about until weeks or months later. At the moment, such are the surrounding uncertainties, that the gold price rise ought to continue this year. There are some concrete steps which support this view, such as the announcement by Poland's central bank that it plans to buy 150 more tonnes of gold.

With silver the industrial use and supply shortage should support its further price rise. Against that, the high price will certainly encourage more silver recycling, and that may cap price rises. Silver is recyclable and about 20% of global supply comes from recycling. In any case, silver is much more volatile than gold - it can register large gains and also significant drops.

So the question of choice - silver or gold - essentially boils down to how much price volatility one is prepared to face. But a neat answer to that choice is to buy both.

For UK clients: At Glint, we make every effort to demonstrate a balanced conversation between gold, silver, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.

For US clients: Graphic representations of value are for illustrative purposes only. The Glint debt card is issued by Sutton Bank, member FDIC. The sale, purchase and storage of precious metals are offered by Glint and not Sutton Bank. Your investment in precious metals through Glint is

·        Not insured by the FDIC.

·        Not a deposit or other obligation of, or guaranteed by, Sutton Bank.

·        Subject to investment risks, including the possible risk of loss of the principal amount invested.

All investments involve risk, including possible loss of principal. The value of precious metals is affected by many economic factors, including but not limited to the current market price, demand, perceived scarcity, and quality of the precious metal. Precious metals can increase or decrease in value. Past performance is not a guarantee of future results. As such, investing in precious metals may not be suitable for everyone.