Spot silver prices soared to a multi-decade high amid rising demand for the protective asset and a worsening supply shortage in London's precious metals market. Silver's rally outpaced even gold's record price rise this year.

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On October 9, silver rose in price by almost 4%, at one point exceeding $50.85 per ounce, which was the maximum since the beginning of 1980. Then billionaire Hunt brothers tried to artificially inflate prices for this metal, which eventually led to a sharp collapse of the market, recalls Bloomberg.

Since the beginning of 2025, the price of silver has risen more than 70%, outpacing even gold's rally.

Why silver is going up in value

The rise in silver prices is supported by the same reasons as in the case of gold, plus a deficit on the spot market, explains CNBC. Increased interest in safe-haven assets is driven by fears over fiscal risks in the U.S., an overheated stock market and the threat to the Fed's independence, Bloomberg lists. It's a "bet on depreciation" of major currencies, the agency says - fears that inflation and growing budget deficits will erode the value of financial assets are fueling the rally in bitcoin and precious metals.

"The devaluation debate, no matter how justified, has spurred investor interest in gold and silver to the point where conventional analysis no longer works - this market increasingly resembles the way investors view AI or the technology sector," said Kieron Hodgson, commodities analyst at Peel Hunt.

At the same time, unlike gold, silver is widely used not only as an investment asset, but also in industry - including the production of solar panels and wind turbines, which together provide more than half of the global demand for this metal, recalls Bloomberg. In 2025, demand is expected to exceed supply for the fifth consecutive year, the agency writes. The shortage also supports the growth of quotations and sharply increases the cost of borrowing the metal, Bloomberg notes.

This article was AI-translated and verified by a human editor

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