2 months ago
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Silver broke $79 an ounce on Friday for the first time ever, capping off a run that’s left gold in the dust and dragged every other precious metal into the rally.
Year-to-date, silver has surged more than 150%, way ahead of gold’s 70% rise. The rally has been tied to a mix of tight supplies, industrial buying, retail hoarding, and the U.S. under Donald Trump, labeling it a “critical mineral” in 2025.
Buyers in solar, investment firms, and regular retail traders have all jumped in too, so this metal that would’ve gone to factories has instead ended up locked in vaults and ETFs.
The largest volume of physical silver changes hands in London, where banks and brokers connect large institutional clients to the market.
The trades happen over the counter, between two parties, not on an exchange. But this isn’t retail territory, folks, so you need a relationship with a major player to get in. HSBC and JPMorgan are two of the key banks storing the metal. As of late press time, these guys hold about 27,187 tons of silver in vaults across the city.
There’s also the futures market, which handles massive volumes without anyone physically touching the metal. Two key hubs are the Shanghai Futures Exchange and COMEX in New York, run by CME Group, both allowing buyers and sellers to agree on a price today for silver that’s technically due later.
But most people don’t wait, so the contracts are swapped out for newer ones, letting traders speculate without needing to store metal. Another perk is that the buyers don’t pay the full price up front. They only put up a margin, a small portion of the total value.
Investors also use funds, bars, coins, and miners to get exposure to silver
For retail investors (a.k.a. ‘dumb money’), silver ETFs have become the easiest way to get exposure, since, of course, they’re traded on platforms like NYSE and LSE, and sold on Robinhood (retailers’ favorite spot).
Naturally, the biggest ETF is the iShares Silver Trust, managed by BlackRock, which holds around 529 million ounces, about $39 billion worth at current prices, according to data from the world’s largest asset manager itself.
If enough buyers pile in and push the iShares silver ETF price above the real value of the metal, the fund adds more silver to its stash and issues new shares, because the goal here is to keep prices aligned.
Some retailers still sell silver bars and coins to individual buyers, but it’s slower, and usually more expensive, though you’d be holding actual metal, so there is that.
Some investors go another route too, like buying shares in mining companies whose stocks are easy to trade and tend to rise or fall with silver prices. But there’s more risk here; company debt, poor leadership, or bad earnings reports can crush a stock even if the metal is rallying.
The surge in prices is also tied to supply hitting a wall. Most of the world’s major silver deposits have been exhausted, and new production isn’t keeping up. At the same time, solar manufacturers are buying more than ever. Retail traders are also stockpiling, choking the pipeline that would normally feed industrial demand.
Not everyone’s bullish. Some traders argue that the silver market is too small and too volatile. Rachel Kwon, head of commodities at Luma Capital, warned, “This market can double or crash in weeks. There’s no in-between.”
Still, others believe there’s more room to run. Some bulls say silver would need to jump above $200 an ounce to beat its 1980 inflation-adjusted high.
While silver dominated headlines, gold also closed higher, hitting a record of $4,549.71 before settling at $4,552.70 for February futures. Platinum surged 9.8% to $2,437.72, reaching a peak of $2,454.12, and palladium spiked 14% to $1,927.81, its best level in over three years. All major precious metals logged weekly gains, with platinum posting its strongest performance on record.
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