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On January 10, 2025, silver bars were stacked in safes at the Pro Aurum gold house in Munich, Germany.
Angelika Warmuth | Angelika Warmuth Reuters
Silver futures rose 5% in early trading Tuesday, continue 2025 is going to be a rollercoaster ride for precious metals.
silver Futures for March delivery rose 5.3% to settle at $74.17 an ounce at 10:30 a.m. London time (5:30 a.m. ET), bringing their year-to-date gain to 153%.
Silver prices will rise sharply in 2025.
Overnight silver futures hit a record high on Monday, hitting $80 an ounce for the first time. However, gains quickly evaporated, with the metal recording its biggest one-day drop since February 2021, closing down 8.7%.
“This is a historic move,” explain KKM Financial CEO Jeff Kilburg on Monday. “We haven’t seen a move like this in a long time.”
However, commodity gains may not be as concentrated in 2026 as this year, said Florian Ielpo, head of macro at Lombard Odier Investment Managers. With economic growth expected to accelerate again in many countries in 2026, the precious metal and its safe-haven status may lose some of its luster.
“We think commodities are one of the best performers next year… but the source of that performance is more cyclical commodities than defensive precious metals,” Ielpo told “Squawk Box Europe” on Tuesday.
Gold futures also recovered from Monday’s sharp sell-off, ending up 1.2% at $4,394.30 an ounce.
at the same time, copper Futures were last up 1.9% at $5.673 an ounce.
Precious metals have performed well this year, driven by a variety of factors. As safe-haven assets, gold and silver have benefited from rising geopolitical tensions. They are also seen as a hedge against inflation. A weaker dollar also makes metals cheaper and more attractive to foreign buyers.
Expectations of interest rate cuts and concerns about supply constraints also pushed prices higher.
Over the weekend, Tesla CEO Elon Musk warned that China’s silver export restrictions, which will take effect on January 1, are “bad.”
“Silver is required for many industrial processes,” Musk wrote onmay prompt further price increases.
Silver is commonly used in electronics, including solar panels, data centers and electric vehicles.
—CNBC’s Sarah Min contributed to this report
