Precious metals prices surged significantly in November

According to the Business Society Commodity Market Analysis System, as of November 28, 2025, the morning spot price of gold was 948.59 yuan per gram, marking a 3.26% increase from the spot price at the beginning of the month (November 1), which stood at 918.62 yuan per gram.
According to the Business Society Commodity Market Analysis System, the average market price of silver on November 28, 2025, was 12,649.33 yuan per kilogram, representing a 10.22% increase compared to the average market price at the beginning of the month (November 1), which was 11,476 yuan per kilogram.
Silver Prices Hit Record High with Enhanced Elasticity
In 2025, silver prices hit a record high and outperformed gold, driven by its dual advantages of both financial and industrial attributes. Coupled with factors such as a persistently widening supply-demand gap and investor preference for high-elasticity assets, silver demonstrated higher gains in the precious metals bull market. The specific reasons are as follows:
Industrial attributes drive rigid demand, while the supply-demand gap continues to widen
Although both silver and gold are precious metals, their demand structures differ significantly. Industrial demand for gold accounts for less than 10%, with the primary demand concentrated in central bank reserves and investment sectors. In contrast, industrial demand for silver exceeds half of its total demand and is poised for explosive growth driven by the new energy industry. The photovoltaic sector is the key growth driver, with 243.7 million ounces of silver used in solar panels in 2024—a 158% increase compared to 2020. As global solar power capacity is projected to add 400 gigawatts between 2024 and 2030, demand for silver in photovoltaics will continue to rise.

On the supply side, silver is primarily a byproduct of metals like copper, lead, and zinc, meaning its production growth depends on the extraction rates of these metals. There is limited room for independent production increases, and global silver output is expected to decline from 944 million ounces in 2024 to 901 million ounces by 2030. This supply-demand imbalance has persisted for five years, with a projected market gap of 110–150 million ounces in 2025—accounting for about 15% of annual mine production. This rigid gap serves as the core fundamental support for silver’s price rise, an advantage that gold lacks.
With higher flexibility in financial attributes, it serves as a high-cost-performance option for capital

At the financial attribute level, silver is regarded as a “high beta asset” of gold, meaning that when gold prices rise, silver often exhibits higher upward elasticity in the latter half of the journey. On the one hand, the price of silver is much lower than that of gold. When gold is already at a high level, funds will actively seek out varieties whose valuations have not fully risen, making silver the preferred choice for amplifying returns. For example, since October 2023, the cumulative price of silver has risen by about 163%, while gold has risen by about 142% during the same period. On the other hand, the market’s expectation of the Federal Reserve cutting interest rates has a more significant driving effect on silver. Precious metals have no interest income, and the holding cost is high when the interest rate is high. Under the expectation of interest rate reduction, after the outflow of funds from cash and treasury bond, in addition to the allocation of gold, a large number of flexible varieties such as silver will flow in. At the same time, amidst global geopolitical conflicts, currency and credit concerns, silver not only enjoys the dividend of safe haven demand, but also has a lower price base, making it easier for its percentage increase to surpass gold.
Funds drive to strengthen upward trend, market sentiment amplifies gains
The concentrated influx of funds further widened the gap in the price increase between silver and gold. Since the fourth quarter of 2023, global silver ETF holdings have continued to rebound, with holdings of approximately 1.13 billion ounces by mid-2025, and a net inflow of approximately $2 billion in US silver ETFs for the year. In addition, silver mining stocks have also become the target of capital pursuit, such as Pan Bai Bai Yin and other stocks breaking through key technical levels in large quantities, forming a cycle of “silver price rise capital influx stock price rise further pushing up silver prices”. In contrast, although gold is supported by continuous central bank purchases, central bank purchases are more inclined towards stable long-term allocation, while the capital flow in the silver market is more active. Coupled with the increased trading heat of futures, paper silver and other varieties, short-term capital speculation has a more significant driving effect on prices, making the upward momentum of silver appear stronger.
The market pattern of repairing the gold silver ratio helps to boost the price of silver
In history, “gold leads, silver charges” is a common pattern in the bull market of precious metals, and the repair of the gold silver ratio often accelerates the rise of silver. When gold breaks through historical highs first, silver, which was previously undervalued, will experience a rebound market to narrow the gold silver ratio. In this round of market trend, gold hit a high of $4380 per ounce early on, while silver’s previous gains lagged behind gold, indicating significant room for valuation repair. Based on this historical law, the market will actively increase its allocation of silver, and this demand for replenishment has become an important driving force for silver’s upward momentum to surpass gold, which also enables silver to achieve a rebound in its later gains.