Silver Hits Record $117 Per Ounce, Up 275% in One Year

Silver prices shattered records this week, climbing to $117.66 per ounce and showing no signs of slowing down. In just three days, the precious metal jumped more than 8%, riding a wave of factors from global market shifts to surging industrial demand.

Matthew Piggott, Director of Gold & Silver at Metal Focus, says several powerful forces are pushing prices higher. A weakening US dollar, geopolitical stability concerns, and strong gold performance are all working together to lift silver's value.

But here's what makes silver's rise different from gold: it's both a safe investment and a critical industrial material. Michael DiRienzo from The Silver Institute explains that silver sits at a unique intersection, acting as both a protective asset during uncertain times and an essential component in technology and green energy.

The numbers tell a remarkable story. Silver averaged just $28.27 per ounce in 2024 and even less in previous years. Today's price represents a dramatic shift that some experts believe could continue, with predictions of $130 per ounce within weeks.

The market is also facing its sixth consecutive year of structural deficit, meaning demand keeps outpacing supply. Strong industrial needs continue driving purchases, even as prices climb.

The Ripple Effect

This price surge is already transforming the solar energy industry in unexpected ways. As silver becomes more expensive, solar panel manufacturers are accelerating their shift toward copper-based materials for production.

Just last week, Chinese metallization supplier DK Electronic Materials announced that a major customer will adopt its high-copper paste for commercial production. This pivot shows how market pressures can spark innovation, potentially making solar technology more affordable and accessible in the long run.

The shift to copper alternatives could help keep solar panel costs stable despite silver's climb. That means the renewable energy revolution can continue expanding without getting derailed by rising precious metal prices.

While some analysts caution that rapid price increases sometimes lead to corrections, the fundamental drivers behind silver's rise remain strong. The combination of limited supply, robust industrial demand, and its role as a strategic asset suggests this isn't just a temporary spike.

Silver's journey from $21 per ounce just a few years ago to today's record heights is creating both challenges and opportunities across industries.