New York — Silver has joined gold in a historic rally, breaking past $50 an ounce for the first time in more than four decades. Prices have surged around 75% this year, fueled by a mix of investor demand, industrial use, and tightening supply.
The spot price hit $51 per troy ounce on Thursday, marking silver’s strongest performance since 1980. Analysts say a combination of economic uncertainty, tariff fears, and inflation worries has driven investors toward precious metals as safe-haven assets.
“There’s a lot of concern about the global economy, and when that happens, people turn to hard assets like silver,” said Michael DiRienzo, CEO of the Silver Institute. “Silver tends to follow gold upwards.”
A Dual Role Driving Demand
Unlike gold, silver serves both as a store of value and a key industrial metal, used in solar panels, smartphones, and data centers. This dual demand has magnified its rally in 2025, said Ewa Manthey, commodities strategist at ING, calling it “a historic year for silver.”
At the same time, a fifth consecutive year of supply deficits — caused by stagnant mining output — is pushing prices higher.
“Strong and growing demand for silver, combined with a persistent supply deficit, is a recipe for higher prices,” said Peter Grant, senior strategist at Zaner Metals.
Precious Metals Outshine Stocks
Gold’s record-breaking climb to $4,000 an ounce has helped lift other metals, including platinum, which is up about 80% this year. Silver’s performance, however, has been the standout — far outpacing gold’s 51% gain.
Investor interest has also surged in exchange-traded funds (ETFs) linked to silver, with the iShares Silver Trust up nearly 68% in 2025.
“Silver’s steady climb is turning into a breakout,” said Maria Smirnova, CIO of Sprott Asset Management. “Supply is thinning, and investors are taking notice.”
As Wall Street braces for ongoing volatility and a weakening dollar, silver’s resurgence marks a defining moment for the precious metals bull market — and a reminder that the world’s oldest safe havens still shine brightest in uncertain times.
