The year 2025 was as exciting as it was challenging for silver investors – and for us as precious-metals strategists: A true up-and-down ride across global markets. Silver was one of the standout asset classes of the year, with spectacular gains of more than 140% in US-Dollar terms and performance that, at times, clearly outpaced equity markets or cryptocurrencies. December in particular saw prices reach a new peak, up around 25% for the month. More recently, however – toward the end of January – the silver market experienced a sharp correction that caught many investors by surprise.
Causes of the price swings
The strong price increases last year had several – partly structural – drivers. A key factor was the combination of high inflation, geopolitical uncertainty, and the search for protection against the loss of purchasing power. Investors therefore moved into real assets, above all precious metals. Silver benefited not only from its role as a “safe haven”, but also from strongly and steadily rising industrial demand. Silver is indispensable in areas such as photovoltaics, medical technology, e-mobility, and electronics. New mining projects, by contrast, are long-term in nature and highly capital-intensive. This inherent mismatch between demand and available supply also pushed prices higher.
The current drop in prices, on the other hand, is less a result of fundamental changes and more a product of short-term market mechanics: Profit-taking after the sharp rise, higher yields on safe assets such as government bonds, and a stronger US-Dollar (following Trump’s intervention with the new Fed chair) put significant pressure on silver. In addition, silver tends to react more volatilely than gold in futures markets – small volumes can lead to larger swings.
Why silver remains attractive over the long term
Despite short-term fluctuations, many arguments still support silver as a strategic real-asset investment. Silver is a physically scarce metal that, unlike many financial products, cannot be created at will. A large portion of mined silver is consumed industrially and is irretrievably lost, which can – and likely will – maintain upward pressure on prices over the long run. At the same time, demand is being driven by technological and climate-related megatrends – a structural tailwind that persists beyond temporary corrections.
For investors who think about their asset allocation over the long term, silver can therefore be a sensible and necessary addition – especially as part of a broadly diversified strategy for wealth preservation and diversification (the “three-spoke strategy”). As we at Elementum repeatedly emphasize, silver should in any case be included as a component of real assets in a portfolio that combines protection against inflation, liquidity, and tangible substance.
How should investors deal with volatility?
Price fluctuations are always part of a healthy market. For long-term investors, corrections are not a cause for concern but can represent buying opportunities. A strategic approach recommends viewing pullbacks not as risk, but as “buy-the-dip” opportunities – provided the investment fits an individual risk profile and time horizon. Short-term speculation can involve high volatility; those who hold physical silver for the long term, however, focus less on day-to-day market moves and more on fundamental value drivers and security.
Conclusion
The recent price swings once again show that silver is not a static financial product, but a dynamic and underestimated real asset with genuine utility and future potential. Especially in economically turbulent times, physical silver proves to be a reliable building block for safeguarding wealth, protecting against inflation, and strategically complementing a portfolio – a real asset that can and will endure across years and generations.
A guest contribution by Holger Köppl, Managing Director, Elementum Deutschland GmbH
Source: www.finanzwelt.de/post/silber-achterbahn-der-maerkte
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
About Elementum
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions – for your security, your assets, and your future.
About the Author
Holger Köppl
Managing Director of Elementum Deutschland GmbH
Managing Director of Elementum Gold GmbH
Holger Köppl began his long career in the financial sector with traditional training as a bank clerk at the Genossenschaftliche Zentralbank in Stuttgart. After several years as a corporate customer advisor and credit expert, he took over the credit department at Volksbank Bad Mergentheim eG, where he also played a key role in restructuring the bank during a difficult phase. From 2011, he held a management position at VR-Bank Asperg-Markgröningen eG before being appointed authorized signatory and head of the property developers and local authorities division at VR-Bank Ludwigsburg eG following the merger. His extensive professional training, including qualifications as a banking specialist and graduate in banking management, as well as his work as an auditor at the Chamber of Industry and Commerce, underscore his expertise in the banking industry. In addition to his professional career, Mr. Köppl has always been active with his own consulting firm in the field of corporate restructuring.
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article reflects the personal opinion of the author. Elementum assumes no responsibility for the accuracy of the content and accepts no liability for its use. This article may contain links to external third-party websites. Elementum is not responsible for the content of these external sites and expressly distances itself from all information provided there. At the time the links were created, no unlawful content was identifiable. This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results. The cover picture has been obtained and licenced from 123rf.com.
