Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025.
Angelika Warmuth | Reuters
Silver futures jumped as much as 5% early Tuesday, continuing 2025’s rollercoaster ride for precious metals.
Silver futures for March delivery were up 5.3% to last trade at $74.17 an ounce at 10:30 a.m. London time (5:30 a.m. Eastern time), bringing year-to-date gains to 153%.
Silver prices have risen significantly in 2025.
Silver futures hit a record high overnight on Monday, reaching $80 an ounce for the first time. However, gains quickly evaporated and the metal logged its largest single-day drop since February 2021, closing the session down 8.7%.
“This is a historic move,” said KKM Financial CEO Jeff Kilburg on Monday. “We haven’t seen a move like this in a long time.”
However, commodities gains might not be as concentrated in 2026 as they have been this year, according to Florian Ielpo, head of macro at Lombard Odier Investment Managers. With an expected reacceleration of growth in many countries in 2026, precious metals and their safe-haven status might lose some of their shine.
“We’re seeing commodities as one of the top performers for next year… but the source of the performance is more cyclical commodities than defensive precious metals,” Ielpo told “Squawk Box Europe” on Tuesday.
Gold futures also recovered from a sharp selloff on Monday, and last traded 1.2% higher at $4,394.30 an ounce.
Meanwhile, copper futures were last seen up 1.9% to $5.673 an ounce.
Precious metals had a stellar year, driven by multiple factors. As safe-haven assets, gold and silver benefited from increased geopolitical tensions. They’re also viewed as hedges against inflation. A weaker U.S. dollar also makes the metals cheaper and more attractive for foreign buyers as well.
Expected interest rate cuts and concerns over supply constraints have also driven up prices.
Over the weekend, Tesla CEO Elon Musk warned that China’s export restrictions on silver, due to take effect on Jan. 1, were “not good.”
“Silver is needed in many industrial processes,” Musk wrote on X, possibly prompting prices to rise further.
Silver is commonly used in electronics, including solar power panels, data centers, and electric vehicles.
– CNBC’s Sarah Min contributed to this report