On 9 October 2025 silver rose above $50 an ounce, breaking a record that had stood since January 1980. Gold, meanwhile, was hovering around $4,000.
The price of silver rose above $50 a troy ounce on 9 October 2025 and came close to $51.20 during the session, above the nominal all-time high of $49.95 reached in January 1980. That record came when the Hunt brothers, Texan billionaires, tried to corner the world silver market, an operation that ended in a crash.
Why it rose
The rise accompanied that of gold, which was then around $4,000 an ounce, driven by demand for safe-haven assets amid geopolitical tensions, doubts about US debt and the US government shutdown that had begun on 1 October. Silver-specific factors added to this: several years of deficit between supply and demand, growing industrial use in solar panels and electronics, record inflows into exchange-traded funds and a shortage of physical metal in the London market.
Silver is more volatile than gold: its market is much smaller and more than half of demand is industrial, so it reacts both to the economic cycle and to investor fear.
Context
Adjusted for inflation, the 1980 price would be worth several times today’s, so the record is only nominal. In the following weeks silver swung sharply, with steep falls after the highs, as is common in such a narrow market.
What to bear in mind
Precious metals can play a diversifying role in a portfolio, but they generate no income and their prices swing widely. Buying at the top, driven by the headlines, is one of the most common mistakes. It is worth knowing how much weight they have in the portfolio, how they are held and how gains are taxed on sale. Ask your adviser before making decisions.
A nominal record forty-five years on is, above all, a lesson about inflation.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
