Precious metal prices rose sharply in November

According to SunSirs' commodity price analysis system, as of the morning of November 28, 2025, the spot price of gold was 948.59 RMB/gram, an increase of 3.26% compared to the spot price of gold at the beginning of the month (November 1st), which was 918.62 RMB/gram.

According to SunSirs' commodity price analysis system, the average market price of silver on November 28, 2025, was 12,649.33 RMB/kilogram, an increase of 10.22% compared to the average market price of 11,476 RMB/kilogram at the beginning of the month (November 1).

Silver prices reached a new high, showing greater resilience

In 2025, silver prices reach new highs and outperform gold in terms of upward momentum. This is primarily due to silver's dual advantages of both financial and industrial attributes, coupled with factors such as a continuously widening supply-demand gap and investor preference for high-volatility assets, allowing it to exhibit higher gains in the precious metals bull market. The specific reasons are as follows:

The industrial nature of the product created rigid demand, and the supply-demand gap continued to widen

Although both silver and gold are precious metals, their demand structures differ significantly. Industrial demand accounts for less than 10% of gold demand, with the core demand concentrated in central bank reserves and investment. In contrast, industrial demand accounts for over half of silver demand and is experiencing explosive growth driven by the new energy industry. The photovoltaic sector is a key growth area, with 243.7 million ounces of silver used in solar panels in 2024, a substantial 158% increase compared to 2020. With the addition of 4,000 gigawatts of solar power capacity globally between 2024 and 2030, demand for silver in photovoltaics will continue to increase. On the supply side, silver is mostly a byproduct of mining other metals such as copper, lead, and zinc, and its production growth depends on the mining pace of these other metals, limiting the potential for independent production increases. Furthermore, global silver production is projected to decrease from 944 million ounces in 2024 to 901 million ounces in 2030. This supply-demand imbalance has persisted for five years, and the market deficit is expected to reach 110-150 million ounces in 2025, accounting for approximately 15% of annual mine production. This structural deficit is a core fundamental support for rising silver prices, an advantage that gold does not possess.

In terms of financial characteristics, it offers greater flexibility and is a cost-effective option for investors

In terms of its financial characteristics, silver is considered a "high-beta asset" relative to gold, meaning that when gold prices rise, silver often exhibits greater upward elasticity in the later stages of the rally. On one hand, silver prices are significantly lower than gold prices. When gold is already at a high level, investors actively seek assets that haven't fully appreciated in value, making silver a preferred choice for amplifying returns. For example, since October 2023, silver prices have risen by approximately 163%, while gold has risen by about 142% during the same period. On the other hand, market expectations of interest rate cuts by the Federal Reserve have a more pronounced positive effect on silver. Precious metals do not yield interest income, making them expensive to hold during periods of high interest rates. However, under expectations of interest rate cuts, capital flows out of cash and government bonds and, in addition to allocating to gold, flows heavily into more volatile assets like silver. Simultaneously, in the context of global geopolitical conflicts and concerns about currency stability, silver benefits from safe-haven demand, and its lower price base makes it easier for its percentage gains to surpass those of gold.

Inflows of capital were reinforcing the upward trend, and market sentiment was amplifying the gains

The concentrated influx of capital had further widened the gap between the gains in silver and gold prices. Since the fourth quarter of 2023, global silver ETF holdings continued to rebound, reaching approximately 1.13 billion ounces by mid-2025. Net inflows into US silver ETFs totaled approximately $2 billion year-to-date. Furthermore, silver mining stocks also became a target for investors, with stocks such as Pan American Silver breaking through key technical levels on high volume, creating a cycle of "rising silver prices - capital inflow - stock price increase - further pushing up silver prices." In contrast, while gold is supported by continuous central bank purchases, these purchases are more geared towards stable, long-term allocation. The silver market, however, experiences more active capital flows, coupled with increased trading activity in futures and paper silver, making short-term speculative capital a more significant driver of price increases, thus making silver's upward momentum appear stronger.

The market principle of gold-silver price ratio correction was driving the rebound in silver prices

Historically, the pattern of "gold leading, silver following" is a common characteristic of precious metals bull markets. The correction of the gold-silver ratio often drives silver's accelerated rise. When gold first breaks through its historical high, undervalued silver typically experiences a catch-up rally to narrow the gold-silver ratio. In this current market cycle, gold reached a high of $4,380/ounce early on, while silver's previous gains lagged behind gold, indicating significant room for valuation correction. Based on this historical pattern, the market actively increases its allocation to silver, and this catch-up demand becomes a major driving force behind silver's rise surpassing gold, allowing silver to eventually overtake gold in terms of percentage gains.

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