Gold also pushed to new records as investors reacted to prospects of interest rate cuts under a new Federal Reserve leadership in 2026, weaker bond yields, and growing concerns about long-term US dollar debasement. At the same time, Bitcoin stayed largely flat through December. The metals rally also reignited a long-running argument over stores of value, with Bitcoin supporters pointing to its fixed supply and long-term outperformance versus gold and silver, while critics argue recent years favor traditional commodities. The discussion was escalated by a much weaker US dollar, which many analysts see as a structural tailwind for scarce assets across both markets.
Silver Surges to Record Highs
Silver prices surged to fresh all-time highs over the weekend, and showed volatility that is more commonly associated with cryptocurrencies. The metal briefly climbed to close to $84 on Sunday before experiencing sharp swings, while gold also pushed to new records around $4,530 as investors continued to rotate into hard assets.
According to markets publication The Kobeissi Letter, silver saw extreme price action shortly after futures markets opened, jumping roughly 6% to a record high before plunging around 10% within just over an hour. The spike and sell-off shed some light on how aggressively traders are positioning in the metal, which is traditionally considered more volatile than gold but still far more stable than most digital assets.
The rally in precious metals is being driven by expectations of looser monetary policy in the United States. With a new Federal Reserve chair set to replace Jerome Powell in 2026, markets are pricing in substantial interest rate cuts under a leadership seen as less hawkish and more aligned with President Donald Trump. Lower interest rates tend to reduce returns on bonds, encouraging investors to seek alternatives like gold and silver.
Silver’s appeal is also supported by strong industrial demand, as it is a key input in a wide range of manufacturing and technology applications. Alongside gold, it has become part of what investors often describe as the “debasement trade,” reflecting concerns about long-term confidence in the US dollar amid sustained monetary expansion.
On the other hand, the cryptocurrency market failed to mirror the momentum seen in metals. Bitcoin remained largely flat through December, slipping about 1.16% over the past 30 days to trade near $90,160 at press time, based on data from CoinCodex. While silver and gold are surging on expectations of easier monetary conditions, crypto markets have so far struggled to find a similar catalyst.
BTC’s price action over the past month (Source: CoinCodex)
Bitcoin Supporters Push Back as Gold Bulls Claim Momentum
Gold and silver’s historic gains led to renewed debate over which asset offers the strongest long-term store of value. According to author and analyst Adam Livingston, Bitcoin has vastly outperformed both metals since 2015, delivering a gain of roughly 27,701% compared with silver’s 405% rise and gold’s 283% increase over the same period. Livingston argued on X that even excluding Bitcoin’s earliest years, its performance still dwarfs that of traditional hard assets.
That view was challenged by well known gold advocate Peter Schiff, who suggested the comparison should focus on the past four years instead of a decade. Schiff firmly believes that Bitcoin’s best days are behind it.
The exchange attracted comments from Matt Golliher, co-founder of Bitcoin-focused wealth manager Orange Horizon Wealth, who pointed out that commodity prices tend to gravitate toward their production costs over time. He explained that higher prices incentivize increased production, expanding supply and eventually pressuring prices lower—an effect that does not apply to assets with a fixed supply.
Golliher added that today’s elevated gold and silver prices are already making previously unprofitable sources economically viable, reinforcing the idea that supply dynamics ultimately cap long-term upside for commodities. This structural difference underpins Bitcoin’s appeal among its supporters, even though the cryptocurrency struggled to gain momentum over the past few months.
The debate is taking place against a backdrop of major macroeconomic shifts. The US dollar is heading toward its worst annual performance in a decade. Media host Ethan Ralph pointed to an almost 10% decline in the US Dollar Index in 2025. The index measures the dollar’s strength against a basket of major currencies, including the euro, yen, and pound.
Falling dollar strength and easing monetary policy from the Federal Reserve are likely to act as tailwinds for scarce assets, according to analyst Arthur Hayes. While gold and silver have already surged on these dynamics, Bitcoin’s price has so far lagged, leaving investors divided over whether the digital asset will eventually follow precious metals higher or continue to consolidate.
Source: https://coinpaper.com/13435/silver-trades-like-crypto-as-precious-metals-hit-new-highs
