Silver Overtakes Oil In Rare Price Inversion, Hits Best Run Since 1979 — What Lies Ahead For The Metal?

Silver prices have surged past oil for the first time since the early 1980s, marking a rare and historic inversion in global commodity markets. One ounce of silver now trades nearly at $64, overtaking WTI crude oil at $60 per barrel. The shift is striking compared with mid-2022, when crude was 5.5 times more expensive than silver.

As of Dec. 15, 2025, silver is fluctuating between $63.69 and $64.14 per ounce, while WTI crude ranges from $57.58 to $59.04 per barrel. The reversal underscores the growing strength of precious metals relative to traditional energy commodities.

In mid-2022, oil traded near $95 per barrel, while silver hovered around $20, giving crude a price advantage of more than 4.5 times. That relationship has now flipped completely.

Silver is in the midst of one of its strongest rallies in modern history. Prices are up over 150% year-to-date, making 2025 silver’s best annual performance since 1979. Since early 2020, silver has gained more than 220%, while oil prices have fallen roughly 44% over the same period.

On Monday, silver climbed 3.2% to $63.83, according to FXStreet data. The move followed last week’s volatility, when prices briefly touched a record high of $64.64 before profit-taking set in.

The gold-to-silver ratio has dropped to 68.08, down from nearly 70 last week, signalling that silver is outperforming gold.

Oil, meanwhile, continues to move in the opposite direction. WTI crude is down about 20% in 2025, putting it on course for its worst annual decline since the 2020 pandemic crash. Weak global demand, rising inventories, and persistent oversupply have weighed on prices throughout the year.

Unlike silver, oil has struggled to find macroeconomic support. Slowing industrial activity, softer transportation demand, and efficiency gains have capped upside, even as geopolitical risks remain elevated.

The result is a rare moment where a precious–industrial hybrid metal is trading at a higher price than the world’s most important energy benchmark.

Analysts say the shift reflects broader macroeconomic changes. Rising silver prices point to stronger industrial demand and heightened investor interest in safe-haven assets. Traders note that this is the first time in decades that precious metals have overtaken energy commodities in value.

The inversion is also reshaping global commodity dynamics. Oil-exporting nations may face pressure on revenues, while precious-metal investors see renewed upside. Many market participants are now reassessing portfolio allocations in light of the shift.

Silver’s rally has been driven by multiple factors. Industrial demand accounts for roughly 70% of total silver consumption, spanning solar panels, electronics, and EVs. BRICS nations are adding silver to reserves, while speculative short squeezes have amplified gains.

Expectations of Federal Reserve rate cuts, a weaker US dollar, and five years of constrained supply and stagnant mine output have further tightened the market.

Renewable energy remains a key structural driver. Rising global solar installations continue to boost silver demand, while electronics manufacturing — particularly smartphones and electric vehicles — supports long-term consumption growth.

Investor positioning has also played a role. Hedge funds and institutional investors are increasing exposure to silver as a hedge against inflation and currency debasement, intensifying buying pressure in an already tight market.

Oil prices, by contrast, have slid amid oversupply and weakening demand. WTI is down 18% year-on-year, marking its poorest performance since 2020. Silver, meanwhile, has risen 130% over the past year and 206% since late 2022, highlighting a sharp divergence in commodity trends.

OPEC policies and geopolitical tensions continue to influence oil markets, but uneven production cuts and soft demand in Europe and China have kept prices under pressure. Analysts warn volatility could persist into 2026, as the global energy transition challenges fossil fuel demand while silver-intensive renewables continue to expand.

Silver reached parity with oil earlier in 2025, first crossing $54.48 per ounce while oil traded between $65 and $75 per barrel. While precise historical parallels from the 1980s are limited — silver peaked near $48 per ounce during speculative episodes — today’s rally appears more sustained and structurally driven.

The silver-to-oil ratio has inverted dramatically. From mid-2022, when oil traded near $95 and silver near $20, silver now leads oil by more than $6. Historically, such inversions are rare and often signal deeper economic shifts.