'We're in a metals war': Gold, silver rebound after sharp sell-off
- - 'We're in a metals war': Gold, silver rebound after sharp sell-off
Ines FerréDecember 30, 2025 at 9:07 PM
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Gold (GC=F) and silver (SI=F) prices rebounded on Tuesday, fueling optimism that the precious metals' historic rally may have room to run.
Gold futures rebounded less than 1% on Tuesday to around $4,362 per ounce. Silver futures rebounded 8% after posting their biggest daily drop since 2021. Both metals are on pace to post their largest annual gains since 1979.
Meanwhile, platinum (PL=F) and copper (HG=F) have also been trading near record territory amid a global AI race and efforts to onshore manufacturing.
"We're in a metals war," Josh Phair, founder and CEO of precious metals manufacturer and distributor Scottsdale Mint, told Yahoo Finance.
Phair pointed out that the trend for countries to secure metal resources started with gold, with central bank buying lifting prices 68% year to date following last year's 27% gain.
Silver and copper also shot up in recent months as the US added them to its critical minerals list, considered vital to the US economy and national security.
"These data centers that are getting created so fast in the United States, the US has to have it [silver] to protect its position in the world," Phair added.
Meanwhile, China, the third-largest silver mining country, is expected to restrict silver exports starting Jan. 1, further raising worries of a supply crunch.
"China is restricting its exports. That means other places in the world are going to have to find the metal somewhere," Phair said.
Read more: How to invest in gold in 4 steps
Roughly 60% of the world's silver is used for industrial applications, from solar panels to data center components to electric vehicle batteries, according to the Silver Institute, a trade organization.
In October, Samsung (005930.KS) struck a $7 million deal to secure future silver supply from a Mexican mine, underscoring the need for the precious metal.
While some strategists warn of a "stretched trade" in precious metals, Phair pointed out that when adjusted for inflation, silver is still "cheap."
"Silver's probably been too cheap for a long time, and that's the other driver of this," he said.
He added, "If you adjust the old high of $50 in 1980 for inflation, it's over $200. So, you could even say that these prices today are still kind of pathetic."
The rise in the price of metals this year comes as the US dollar (DX-Y.NYB) has weakened nearly 10% and the Federal Reserve lowered interest rates three times in 2025.
Gold and silver prices rebounded on Tuesday, fueling optimism that the precious metal's historic rally may have room to run. (AP Photo/Matthias Schrader, File) ()
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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