Silver Outshines Gold: Analyzing the 12-Month Rally and February Correction

When comparing Gold and Silver performance over the past year—spanning February 2025 through February 2026—the data tells a striking story of divergent trajectories, with one precious metal dramatically outpacing the other despite recent market turbulence.

Exceptional Price Surges Define the Year

Gold started the period around $2,600–$2,700 per ounce in early 2025, climbing to approximately $5,040–$5,060 by late February 2026. This represents a robust gain of 85–95% over the twelve-month window, with 2025 alone delivering roughly 65% appreciation according to most market reports.

Silver’s performance, however, tells an even more compelling story. Beginning near $28–$30 per ounce in early 2025, it surged to $81–$83 by late February 2026—a staggering jump of 170–190% on a percentage basis. Market aggregates recorded 2025 gains ranging from 145–150%, with some trackers reporting even higher figures exceeding 160%.

The contrast is unmistakable: Silver more than doubled Gold’s percentage returns, often delivering two times or greater outperformance over the measurement period.

Industrial Demand and Supply Constraints Drive Silver Higher

The exceptional Silver rally stems from multiple converging factors. Industrial demand has surged, particularly in emerging sectors: solar panel manufacturing, electric vehicle production, and advanced electronics all rely heavily on Silver as a critical material. Unlike Gold, which serves primarily as a store of value and inflation hedge, Silver plays a dual role—precious metal and industrial commodity.

Supply-side pressures compounded the rally. Market participants observed persistent supply deficits, creating structural support for prices. Combined with speculative investor enthusiasm and accumulation by large traders, these elements created a powerful upward momentum throughout 2025 and into early 2026.

Historic Highs and February Correction: A Reality Check

Both metals reached remarkable peaks in late 2025 and January 2026. Gold approached $5,600 and beyond, while Silver surged past $100–$120 per ounce—territory previously unseen in many years.

February 2026 brought sharp corrections to both markets. Gold retreated more than 25% from its January peak in a matter of days, while Silver experienced even steeper pullbacks, declining over 40% in certain stretches. This volatility serves as a reminder that precious metals, despite their safe-haven status, remain subject to sudden repricing when sentiment shifts.

Notably, despite the February pullback, Silver retained substantially stronger net gains compared to a year prior, underscoring the metal’s overwhelming outperformance across the full measurement period.

Gold-Silver Ratio Narrows: What It Signals

A critical indicator for sophisticated investors is the gold-to-silver ratio. Mid-2025 saw this ratio hovering between 90:1 and 100:1—meaning it took 90–100 ounces of Silver to equal one ounce of Gold by price. By late February 2026, this ratio had compressed to approximately 62–65:1.

This narrowing is a textbook signal of Silver outperformance. When the ratio falls, it suggests Silver prices are rising faster than Gold, or Silver is strengthening while Gold weakens. The dramatic shift from 90–100:1 down to 62–65:1 over twelve months reflects Silver’s exceptional appreciation relative to its more famous counterpart.

The Bottom Line

Over the past year, Silver has delivered exceptional returns that far exceeded Gold’s solid but more modest gains. Industrial tailwinds, supply constraints, and investor enthusiasm propelled Silver ahead, creating a rare environment where the industrial metal outshined the traditional store of value. While February’s correction reminded markets of volatility risks, the long-term trend favors Silver’s remarkable twelve-month performance trajectory.