Sometimes the narrative and investor perceptions don’t fit the reality. Investors are forced to realign the way they think about an asset class or, in this case, the asset classes of gold and silver or buying gold miners like Newmont (NYSE: NEM) or a silver miner like Hecla Mining (NYSE: HL).
While the two precious metals have different dynamics, they have both surged in recent years, driven by speculative investment that somewhat unwound during the recent broad-based market sell-off. That wasn’t supposed to happen to so-called safe-haven investments, but that moniker needs some qualification.
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Whenever there’s a broad sell-off in assets, investors look to raise cash by selling, and it’s understandable if they take profits on assets that have soared in recent years, like gold and silver. That sell-off will be more pronounced if demand for gold and silver comes primarily from speculative investment rather than from underlying demand, such as from the jewelry, electronics, technology, or industrial sectors.
There’s evidence of growing investment demand but declining underlying demand amid rising prices for both metals. Jewelry demand declined in 2025, and so did Central Bank demand. The latter is somewhat surprising, given that the bull case for gold often rests on the idea that Central Bank buying will drive gold prices higher.
Gold Demand (tonnes) | 2024 | 2025 | Change* |
|---|---|---|---|
Technology | 326 tonnes | 323 tonnes | (3) tonnes |
Jewelry | 2,026 tonnes | 1,638 tonnes | (388) tonnes |
Investment | 1185 tonnes | 2,175 tonnes | 990 tonnes |
Central Banks | 1092 | 863 tonnes | (229) tonnes |
Total | 4,630 tonnes | 4,999 tonnes | 370 tonnes |
Data source: World Gold Council Research. *Numbers may differ due to rounding.
Turning to silver, declining underlying demand is again offset by increased investment demand, but unlike gold, it’s not enough to fully offset it.
Silver Demand (million ounces) | 2024 | 2025 | Change* |
|---|---|---|---|
Industrial | 681 million ounces | 677 million ounces | (3) million ounces |
Photography | 26 million ounces | 24 million ounces | (1) million ounces |
Jewelry | 209 million ounces | 196 million ounces | (13) million ounces |
Silverware | 54 million ounces | 46 million ounces | (8) million ounces |
Net physical investment | 191 million ounces | 204 million ounces | 14 million ounces |
Net hedging demand | 4 million ounces | 0 | (4) million ounces |
Total | 1,164 million ounces | 1,148 million ounces | (16) million ounces |
Data source: The Silver Institute.* Numbers may differ due to rounding.
