Earlier this week, silver prices soared to a historic high of $93 per ounce, and as of early trading this Friday, they were holding steady around $90 per ounce.
This significant surge in silver prices is driven by robust industrial demand and growing investor interest. Uncertainty surrounding trade policies, inflation trends, and the outlook for interest rates has heightened market enthusiasm for precious metals.
Since January 2025, the spot price of silver has climbed from approximately $30 per ounce to a recent peak of $93 per ounce. As of Thursday afternoon, this represents a gain of roughly 210%.
Unlike gold, which is primarily a store of value or used in jewelry, silver's price movements are more closely tied to industrial activity. According to the Silver Institute, over half of global silver demand originates from the manufacturing sector, with growth fueled by its applications in electronics, solar panels, and electrification.
Influenced by the sharp price increase, the U.S. Mint indicated it might temporarily remove certain silver coin products from sale to reassess pricing. The Mint has taken similar actions during previous periods of substantial silver price appreciation.
What is the current value of a $1,000 investment made one year ago in a silver Exchange-Traded Fund (ETF)?
In recent years, accelerated global investment in renewable energy, electric vehicles, and grid upgrades has pushed industrial demand for silver to record highs. The Silver Institute notes that silver's high conductivity and corrosion resistance make it difficult to substitute in many related technologies, directly linking its demand to the growth of clean energy and advanced manufacturing.
This demand surge has delivered substantial returns for investors holding silver-related assets. While some investors choose to purchase physical silver bars or coins, many retail investors gain exposure through silver Exchange-Traded Funds (ETFs), which trade on stock exchanges like shares.
One of the world's most actively traded silver ETFs is the iShares Silver Trust (SLV), whose price is designed to track the price of physical silver. Investors can participate without storing the metal themselves by buying shares of the fund, which holds physical silver in vaults; the fund's net asset value fluctuates with the market price of silver, and returns to investors reflect these changes after fees are deducted.
Over the past year, the share price of the iShares Silver Trust has increased by approximately 200%, trading around $84 per share as of Thursday afternoon.
The following calculations, based on the fund's price movements since its listing in April 2006, illustrate the returns on a $1,000 investment made at different points in time:
If you invested $1,000 one year ago: Gain: 208% Current Value: $3,083 If you invested $1,000 five years ago: Gain: 254% Current Value: $3,537 If you invested $1,000 when the fund launched in 2006: Gain: 507% Current Value: $6,071
Investors often view silver as a tool for portfolio diversification; however, its price is notoriously volatile and it generates no income, fundamentally distinguishing it from owning stocks. Financial professionals commonly emphasize the importance of diversification across asset classes, rather than concentrating significant capital in a single stock or a single-commodity-linked ETF.
In contrast, broad-based index funds—including many ETFs that track stock market indices—offer diversified investment exposure and typically demonstrate more stable performance compared to a concentrated investment in a single asset like silver.
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