Many thought Donald Trump’s return to the White House would mainly boost cryptocurrencies, sending BTC/USD and the broader market to new highs. However, the reality has been somewhat different. Since the start of the year, Bitcoin prices have declined by more than 7%, although it reached a new all-time high in October.
Stocks, meanwhile, have held up well despite unresolved trade wars and worries about inflation. The S&P 500 index, in particular, is up 17.2%, the Nasdaq is up 21.5%, the Dow Jones is up 14.1%, and the Russell 2000 is up 14.7%. Even IPOs throughout the year didn’t disappoint, benefiting both companies and investors.
But the real stars of 2025 were metals, particularly precious metals.
Gold rose by almost 69%, silver soared by 136%, platinum also surged by 136%, and palladium gained around 99%. These figures are truly astonishing, especially when we consider that we are not in a clearly “risk-averse” environment and that a recession does not appear imminent either globally or in the United States.
In terms of driving factors, starting with gold, structural supply shortages played a key role. Investor demand surged on expectations of a more accommodative Federal Reserve policy, while central bank demand was driven mainly by geopolitical risks and growing distrust of the US dollar.
The risk of a major correction can’t be ruled out after such a sharp rise. But central bank purchases are usually long-term and rarely reversed quickly. Investors may still hedge against a potential AI bubble, but even if that doesn’t happen, Fed rate cuts could weaken the dollar and continue to support gold.
Silver’s rally had an extra boost from a short squeeze. With physical silver in short supply, traders betting on lower prices had to buy back metal to close their positions, pushing prices higher. At the same time, available inventories in London dropped sharply, while exchange stocks in Shanghai fell to a ten-year low.
For platinum group metals, gains were driven by supply disruptions, tightening fundamentals, and strong industrial demand. Market momentum added to the effect: following the previous rally in gold, investors rushed to “catch up” by buying silver, platinum, and palladium, resulting in synchronized price rises.
Beyond precious metals, copper has also grabbed attention recently. Prices surpassed $12,000 per ton for the first time amid concerns about reduced global supply, unexpected mine closures, and growing enthusiasm around copper’s critical role in artificial intelligence-related infrastructure.
What does the future hold?
In the base scenario, silver supply is expected to decline further, while gold is likely to continue benefiting from central bank purchases in 2026. Copper’s outlook, in turn, is more mixed, as slower economic growth, market volatility, and political uncertainty could weigh on demand for industrial metals.
This article was written by IL Contributors at investinglive.com.