Silver at the top: for the first time in 40 years it has overtaken oil

In December 2025, silver is trading higher than oil, a unique phenomenon that has not happened in more than four decades. This historic reversal has fundamental and technical reasons that every investor and analyst should understand.

What exactly happened: a brief overview of the historical event

In December 2025, the price of silver exceeded the cost of a barrel of WTI oil for the first time since the late 1970s - by about $63/oz vs. ~$56/bbl. This is a structural deviation in the silver-to-oil ratio that has expanded further than at any time in the last 40+ years.

This reversal reflects not just a temporary price difference, but profound changes in demand, supply and market expectations.

Key drivers of silver price growth

The price of silver has risen to record levels due to a combination of several key factors:

1. Fundamental demand in industry

Silver is not only a precious metal, but also critical raw materials for technologysolar panels, electric vehicles, electronics, 5G infrastructure. Today's technological demand accounts for the majority of global consumption, and this trend is only growing.

2. Structural deficit of supply

Global silver stocks on exchanges have fallen to record lows, and production is not keeping pace with demand growth, especially since 75-80% of production is associated with by-products of other metals.

3. Investment interest and safe assets

Due to instability in the financial markets and fears of inflation, investors are more likely to buy "safe" assets. Silver as a hybrid of industrial and security assets attracts both risk hedgers and speculators.

Why the oil price is falling

Unlike silver, oil is facing time and structural problems:

• Oversupply on a global scale despite the OPEC+ cuts;
• Slow demand in key regions (Europe, China) through energy saving and transition to clean resources;
• Frequent cyclical fluctuations in energy consumption.

In total, this leads to the following oil cannot maintain its previously high levels. In 2025, it continued to weaken, while silver showed an upward oscillation.

What analysts say: silver prospects after the record

Analytical estimates show that:

• Support at ~$60-$61/oz serves as an important foundation for further growth;
• Resistance near ~$65/oz remains a psychological barrier for traders;
• If the price consolidates above this resistance, the potential for further upside remains.

This means that the silver market does not necessarily end the rallybut may move into a stage of technical correction or consolidation, which is typical in large markets.

How should investors react to the new conditions?

Investors should be prepared for dramatic changes in the commodities market. A strategic approach may include portfolio diversificationwhere silver is becoming an important asset alongside traditional investments in stocks or bonds. In addition, it is important to keep an eye on economic forecasts and other macroeconomic indicators that may affect the price dynamics.

For traders, it is important to fundamental market analysisUnderstanding how demand for silver correlates with supply will allow you to make informed decisions about buying or selling assets at a particular time.

Silver prospects in the face of global changes

The situation when silver is trading higher than oil is a rare and revealing event that signals profound changes in the global structure of demand for raw materials. This phenomenon is driven not only by short-term fluctuations, but also by long-term fundamental changes in the global economy, technology, and investor sentiment.

Source: The Economic Times