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The price of silver reached a new all-time high this afternoon at 2:47 p.m., hitting $50.02 per troy ounce. This surpassed the previous record set on January 18, 1980, when the spot price peaked at $49.45 per troy ounce. Silver investors have enjoyed an exceptional return of more than 73% in U.S. dollars so far this year. On January 1, 2025, one ounce of silver was still priced at $28.86.
In early 1980, silver had already come close to the $50 mark. Brothers Nelson and William Hunt single-handedly drove the price up by more than 700%. During a period marked by a weakening dollar and fears of hyperinflation, the two billionaires purchased massive amounts of physical silver and entered into numerous futures contracts. Instead of settling these contracts in cash, as was customary, they demanded physical delivery, triggering an acute supply shortage.
In euros, silver also reached a new record high of €1,384 per kilogram, representing an increase of more than 54% compared to the start of the year, when a kilogram of silver cost €896. Silver has thus outperformed gold, which is up more than 38% in euros. Both precious metals are benefiting from increasing uncertainty in financial markets and a flight to tangible assets.
“Interest in silver has surged this year,” says Paul Buitink, director of Holland Gold. “Our clients see silver as the underdog among precious metals, with significant upside potential. It benefits from the same macroeconomic forces as gold, but also from growing industrial demand.”
Silver is more volatile than gold because it is not only an investment metal but also a crucial industrial material, with demand that can fluctuate sharply. Despite rising consumption, supply from mining and recycling has remained relatively stable. The industrial sector currently accounts for about 59% of total silver demand. Silver is used in electronics, solar panels, semiconductors, catalysts, water purification systems, and medical equipment.
“After such a rapid price increase, a correction is always possible,” says Buitink. “That’s why we advise our clients to remain cautious. However, as long as the underlying factors such as high debt levels, inflation, and geopolitical tensions persist, the long-term outlook for silver remains positive.”
Buitink adds that many clients also view silver as a form of emergency money. “Our customers regularly buy silver to keep something tangible on hand, for example, in case of a power outage or disruption in digital payment systems.”
