As of 8:15 a.m. ET on September 24, 2025, silver traded at $44.07 per ounce. While this reflects a minor 0.76% dip from the previous day, the metal has seen substantial gains of 13.4% over the past month and more than 37% over the last year.
Historical Silver Performance
Silver is not traditionally considered a high-growth investment. Historically, it has underperformed other assets, such as stocks. For example, an investment in silver from 1921 onward would be worth approximately 96% less today than an equal investment in the S&P 500.
Instead, silver is primarily valued for its stability and its role as a hedge against inflation. Often called a “store of value,” it tends to preserve purchasing power during periods of rising inflation. Compared to gold, silver prices are typically more volatile. This is largely due to its significant industrial demand in sectors like solar energy and healthcare, whereas gold functions almost exclusively as a safe-haven asset.
Understanding Key Trading Terms
The “spot price” of silver is the live market rate for immediate purchase or sale. However, retail buyers should expect to pay a premium over the spot price to cover markups, shipping, insurance, and other administrative fees. The spot price itself is a key indicator of market demand; a rising spot price suggests strong buying interest.
Another important concept is the “price spread,” which is the difference between the buying (ask) price and the selling (bid) price. The ask price is what you pay to purchase silver, while the bid price is what you receive when you sell it. A narrow spread generally indicates high market demand and liquidity.
How to Invest in Silver
Investors can gain exposure to silver through direct ownership of physical assets or by investing in silver-backed financial products. The primary options include:
- Bullion Bars and Rounds: Valued and sold based on weight and purity.
- Government-Minted Coins: Items like American Silver Eagles and Canadian Silver Maple Leafs often carry a premium due to their collectibility and government backing.
- Jewelry: Custom and artisan pieces are valued for craftsmanship beyond their silver content.
- Silver Mining Stocks: Investing in companies that extract silver offers indirect exposure to the commodity’s price.
- Exchange-Traded Funds (ETFs): These funds hold physical silver, allowing investors to own a stake without the responsibilities of storage and insurance.
For investment purposes on exchanges, silver bullion and coins must meet a minimum purity of 99.9%. Silver with lower purity is typically classified as collectible or for industrial use.
Current Market Outlook
Silver has surged nearly 25% in 2025, reaching its highest price in over a decade. The decision to invest now depends on an individual’s financial goals and market outlook. For those concerned about inflation, adding precious metals to a portfolio can be a prudent move. Additionally, investors who anticipate growing industrial demand for silver in electronics and green energy may see potential for further price appreciation.
As of 8:15 a.m. ET, other precious metals were trading at the following prices per ounce: gold at $3,770.35, platinum at $1,477.10, and palladium at $1,233.18. Gold remains the benchmark for stability due to its larger market, while platinum and palladium often exhibit volatility similar to silver.
With persistent economic uncertainty, precious metals continue to warrant consideration. Silver’s performance in 2025 has outpaced that of gold, and some analysts forecast continued upside. Its lower price point also makes it a more accessible hedging tool for a wider range of investors.
Frequently Asked Questions
What percentage of my portfolio should I allocate to silver?
Financial advisors often recommend allocating 10% to 15% to silver, while keeping total precious metals holdings below 20% of your overall portfolio.
Can silver be held in an IRA?
Yes, IRA-eligible silver coins and bars with 99.9% purity can be held in a self-directed IRA, provided they are stored with an IRS-approved custodian. Collectible items with lower purity, such as pre-1965 U.S. “constitutional silver,” are not permitted in an IRA.
What is driving silver prices in 2025?
This year’s price increase is driven by a combination of tight market supplies and robust demand from both industrial applications and investors seeking a hedge against economic volatility.
