Gold isn’t the only precious metal on a gangbusters rally.
Silver prices have surged roughly 75 per cent this year, boosted by investors seeking out safe havens, plus strong industrial demand and lingering supply deficits.
Silver futures traded in New York surged 7 per cent on Monday and hit an all-time high of roughly US$52.63 ($80.77) a troy ounce, surpassing a previous peak set in 1980.
Spot silver prices – another real-time measure of the value of silver – also hit a record high above US$52 ($79.80) a troy ounce. Spot silver extended its gains after breaching the US$50 ($76.73) threshold on October 9 for the first time since 1980.
Traders have turned to hard assets like gold and silver this year as safe investments and tools to hedge against geopolitical instability and economic uncertainty, from concerns about tariffs and inflation to worries about Federal Reserve independence and government debt burdens.
Silver has been on a tear, supported by momentum from gold’s record-breaking rally. The metal is considered a cheaper, alternative safe haven investment to gold, which just hit US$4000 ($6138.74) a troy ounce for the first time ever.
“There’s just a lot of concern about the global economy, and when that happens, people turn to hard assets like silver,” Michael DiRienzo, chief executive of the Silver Institute, previously told CNN. “Silver tends to follow gold upwards.”
A standout year for precious metals
While investor demand is driving up prices, silver also has widespread industrial uses, including in building data centres, solar panels and smartphones.
“Its dual role as an industridal metal and safe-haven asset has amplified the rally, making 2025 a historic year for silver,” Ewa Manthey, a commodities strategist at ING, said in an email.
There are also supply concerns that could underpin higher prices.
The silver market is in its fifth year of a structural supply deficit because of “stagnant mining output” lagging behind demand, according to Peter Grant, vice president and senior metals strategist at Zaner Metals.
“Strong and growing demand for silver, combined with a persistent supply deficit, is a recipe for higher prices,” Grant said in an email.
Gold prices have soared across the past two years, driven by investors diversifying into safe havens.
Central banks decreasing reliance on the dollar and building reserves of gold also boosted prices.
The safe-haven rally has spread out to other precious metals like silver and platinum this year. Silver and platinum, which are up roughly 75 per cent and 80 per cent this year, respectively, are both outpacing gold, which is up roughly 51 per cent.
Precious metals and bitcoin have also become beneficiaries of Wall Street traders and fund managers looking to protect against a weaker dollar.
Investors can get exposure to silver by buying bars or coins or investing in exchange-traded funds backed by silver. The iShares Silver Trust ETF has surged roughly 68 per cent this year.
Inflows into silver ETFs this year are at their highest level since 2020, according to Maria Smirnova, chief investment officer at Sprott Asset Management.
“Silver’s steady climb is turning into a breakout,” Smirnova said.
“Supply is thinning, and investors are taking notice.”
