By John Towfighi, NCS
New York (NCS) — Gold isn’t the one treasured steel on a gangbusters rally.
Silver prices have surged roughly 75% this 12 months, boosted by investors searching for out safe havens, plus sturdy industrial demand and lingering provide deficits.
Silver futures traded in New York surged 7% on Monday and hit an all-time high of roughly $52.63 a troy ounce, surpassing a earlier peak set in 1980.
Spot silver prices — one other real-time measure of the worth of silver — additionally hit a record high above $52 a troy ounce. Spot silver prolonged its features after breaching the $50 threshold on October 9 for the primary time since 1980.
Traders have turned to exhausting belongings like gold and silver this 12 months as safe investments and instruments to hedge towards geopolitical instability and financial uncertainty, from issues about tariffs and inflation to worries about Federal Reserve independence and authorities debt burdens.
Silver has been on a tear, supported by momentum from gold’s record-breaking rally. The steel is taken into account a less expensive, various safe haven funding to gold, which simply hit $4,000 a troy ounce for the primary 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, CEO of the Silver Institute, beforehand advised NCS. “Silver tends to follow gold upwards.”
A standout 12 months for treasured metals
While investor demand is driving up prices, silver additionally has widespread industrial makes use of, together with in constructing information facilities, photo voltaic panels and smartphones.
“Its dual role as an industrial metal and safe-haven asset has amplified the rally, making 2025 a historic year for silver,” Ewa Manthey, a commodities strategist at ING, mentioned in an electronic mail.
There are additionally provide issues that would underpin increased prices.
The silver market is in its fifth 12 months of a structural provide deficit due to “stagnant mining output” lagging behind demand, in line with Peter Grant, vp 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 mentioned in an electronic mail.
Gold prices have soared throughout the previous two years, pushed by investors diversifying into safe havens. Central banks decreasing reliance on the greenback and constructing reserves of gold additionally boosted prices.
The safe-haven rally has unfold out to different treasured metals like silver and platinum this 12 months. Silver and platinum, that are up roughly 75% and 80% this 12 months, respectively, are each outpacing gold, which is up roughly 51%.
Precious metals and bitcoin have additionally turn into beneficiaries of Wall Street merchants and fund managers seeking to shield towards a weaker greenback.
Investors can get publicity to silver by shopping for bars or cash or investing in exchange-traded funds backed by silver. The iShares Silver Trust ETF has surged roughly 68% this 12 months.
Inflows into silver ETFs this 12 months are at their highest degree since 2020, in line with Maria Smirnova, chief funding officer at Sprott Asset Management.
“Silver’s steady climb is turning into a breakout,” Smirnova mentioned. “Supply is thinning, and investors are taking notice.”
This story has been up to date with new record highs.
The-NCS-Wire
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