Why Silver Prices Surged, Then Dropped Overnight |
Safe-haven demand, industrial use, and dollar weakness fueled the rally—but profit-taking may be kicking in.
BY FAST COMPANY
Credit: Freepik
In a record weird year for the economy, the price of silver is the latest thing to behave strangely.
The price of the second fiddle precious metal has soared over the last month, hitting record highs and outpacing the growth of gold. After hovering between $15 and $25 an ounce for much of the last decade, the price of silver topped $40 an ounce this fall before spiking to a record high of $82 at the end of December. After topping $80 on Monday, silver fell back closer to $70 an ounce—still more than double what the metal was worth only a year ago.
Precious metals like silver tend to do well in times of economic uncertainty and 2025 has fit that bill and then some. Investors looking to insulate themselves from the Trump administration’s chaotic economic choices turned to gold as a safe haven asset in 2025, sending the price of the top dog precious metal up. Like silver, gold’s price growth outstripped the stock market this year and hit new record highs.
Long-awaited cuts to the federal interest rate, and future cuts on the near horizon, are also pushing the price of precious metals higher. Small time investors are getting in on the silver action, with amateur traders