CNBC.COM
Silver prices surged to a record high of $93 earlier this week and were trading around $90 an ounce Friday morning.
The rally has come amid strong industrial demand and rising investor interest, as uncertainty around trade policy, inflation and the interest-rate outlook has lifted interest in precious metals.
Since January 2025, the spot price of silver has climbed from about $30 an ounce to roughly $93 at its recent peak, for a gain of about 210% as of Thursday afternoon.
Unlike gold, which is held largely as a store of value or for jewelry, silver is more closely tied to industrial activity. More than half of global silver demand comes from manufacturing, driven by its use in electronics, solar panels and electrification, according to data from the Silver Institute.
The rally has been so rapid that the U.S. Mint said it may temporarily remove some silver coin products from sale while it reviews pricing, a step it has taken in the past during periods of sharp price increases, CoinNews reports.
How much $1,000 invested in a silver ETF would be worth today
Industrial demand for silver has reached record levels in recent years as investment in renewable energy, electric vehicles and power-grid upgrades accelerated worldwide. Silver's high electrical conductivity and resistance to corrosion make it difficult to substitute in many of these technologies, linking demand directly to growth in clean energy and advanced manufacturing, the Silver Institute says.
That surge in demand has translated into sizable gains for investors with exposure to silver. While some buy physical bullion or coins, many retail investors access the metal through exchange-traded funds, which trade on stock exchanges like shares of a company.
One of the most widely traded ETFs is the iShares Silver Trust (SLV), which tracks the price of physical silver bullion. Instead of storing silver themselves, investors can buy shares of the ETF, which holds silver in vaults and reflects changes in the metal's market price, minus fees.
SLV's shares are up about 200% in the last year and were trading around $84 per share as of Thursday afternoon.
Here's how a $1,000 investment in the iShares Silver Trust would look over time, based on changes in the ETF's share price, including since it first began trading in April 2006.
If you invested one year ago:
- Percentage change: 208%
- Total: $3,083
If you invested five years ago:
- Percentage change: 254%
- Total: $3,537
If you invested in 2006:
- Percentage change: 507%
- Total: $6,071
Investors often seek out silver as a way to diversify their investments, but its sharp price swings and lack of income make it very different from owning shares in a company. Financial professionals generally emphasize diversification across assets, rather than concentrating too much money in a single stock or a single-asset ETF tied to one commodity.
Broader index funds — including many offered as ETFs that track stock indexes — provide diversified exposure and tend to be more stable than investments tied to a single asset like silver.
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