As escalating geopolitical tensions, fiscal uncertainties, and persistent supply constraints converged throughout 2025, precious metals surged to unprecedented price levels, with gold reaching an all-time high of $4,116.77 per ounce on October 13, 2025, while silver climbed to a record $53.50 during the same month.
The average gold price for Q4 2025 registered at $3,875.05 per ounce, substantially exceeding the LBMA analysts’ revised forecast of $3,159 per ounce established by October. This revision itself represented a significant upward adjustment from the initial 2025 projection of $2,735 per ounce.
Silver’s performance proved equally dramatic, with prices climbing 70% year-to-date as of mid-October. This surge was propelled by eight consecutive weekly gains and persistent supply constraints that drove additional price spikes. The LBMA analysts’ revised 2025 average silver price forecast reached $41.18 per ounce by July, reflecting growing recognition of fundamental supply-demand imbalances.
Global silver demand was expected to exceed supply for five consecutive years by 2025. Market turmoil intensified safe-haven inflows as intensifying US-China trade tensions coincided with US government shutdowns, European political instability, and Asian leadership changes.
The US President threatened additional 10% tariffs on Chinese goods starting November 2025, compounding investor concerns regarding mounting fiscal risks and global debt pressures. Anticipation of multiple Federal Reserve rate cuts further increased gold and silver’s appeal relative to yield-bearing assets.
Physical market dynamics amplified price movements, particularly in London, where lease rates for silver soared 30% in October, squeezing short sellers as rollover costs for short positions on physical silver grew unsustainable. Surging demand from India in recent weeks further strained global supply, while shipments of physical silver to New York increased amid tariff concerns.
The gold-to-silver price ratio as of May 2025 stood 74% above the 2000–2015 average. This reflected vastly stronger relative growth for gold versus silver and maintained the historically elevated levels observed since 2016. Silver prices have tracked gold price trends throughout the six-decade period since 1960, though gold has consistently demonstrated superior growth. Both metals continued to serve as hedges against currency instability as central banks worldwide grappled with inflationary pressures. Singapore’s property market also benefited from this global flight to stable assets, with foreign investors seeking refuge in the city-state’s resilient real estate sector.
The gold-to-silver ratio in May 2025 reached 74% above its 2000–2015 average, continuing the elevated trend since 2016.
Gold prices notched record highs in every major currency in 2025, demonstrating the metal’s universal safe-haven appeal amid widespread market uncertainty.
