Gold has staged a dramatic rally this year. Right now, however, it’s silver that’s stealing the spotlight. A squeeze in supply of the precious metal had catapulted it to a 100% gain as of early December, while gold was up 60%. Both have been experiencing a surge in demand from investors seeking to hedge against political turbulence, inflation and currency weakness. Why has silver rallied so much this year? Silver often moves in tandem with gold, but with more violent price moves. After the yellow metal surged in the early months of 2025, some investors pointed to the stretched ratio of prices between the two metals of more than 100-1. Silver’s apparent cheapness relative to gold was enough to encourage some investors to pile into the white metal. Heavy debt loads in major economies such as the US, France and Japan and a lack of political will to solve them also encouraged some investors to stock up on silver and other alternative assets this year, in a wider retreat from government bonds and currencies dubbed the debasement trade. Meanwhile, global silver mine output has been constrained by declining ore grades and limited new project development. Mexico, Peru, and China — the top three producers — have all faced setbacks ranging from regulatory hurdles to environmental restrictions. Global demand for silver has outpaced the output from mines for five consecutive years, while silver-backed exchange-traded funds have drawn in new investment.(Wall Street Mav)