Silver Price Drops 0.54% Daily but Gains 28.78% Year-to-Date Amid Economic Uncertainty

As of Tuesday, August 26, 2025, at 8:20 a.m. Eastern Time, the price of silver stood at $38.48 per ounce, reflecting a 0.54% decline compared to the same time on Monday, August 25. Despite the daily drop, the price remains 28.78% higher than the $29.88 per ounce recorded on August 26, 2024 [1]. Over the past month, silver has seen a modest increase of 0.94% from $38.12 per ounce as of July 26, 2025 [1].

The recent performance of silver is being viewed as a sign of growing interest in precious metals amid ongoing economic uncertainty. The nearly 25% year-to-date increase in silver prices has positioned the metal as one of the stronger performers in the precious metals market in 2025 [1]. Analysts note that this trend could continue if inflationary pressures persist or if industrial demand—particularly from sectors like renewable energy and electronics—surges [1].

In comparison to other precious metals, silver’s volatility stands out. While gold is generally seen as a stable store of value, silver exhibits more pronounced price swings due to its dual role as both an investment asset and an industrial commodity. As of the same time on August 26, gold was priced at $3,378.66 per ounce, platinum at $1,338.45, and palladium at $1,089.52 [1]. Platinum and palladium often mirror silver’s volatility, while gold remains the least volatile of the four.

Investors have multiple avenues to access silver, including physical bullion, coins, ETFs, and silver mining stocks. ETFs are increasingly popular due to their convenience and lack of storage requirements. Silver bullion and coins must meet the “three nines fine” standard (99.9% purity) to qualify for investment-grade status. Coins such as the American Silver Eagle or Canadian Silver Maple Leaf are often priced with a premium due to their collectible and government-backed nature [1].

The spot price of silver—representing the immediate price at which it can be traded—is a key indicator of market sentiment and demand. Investors often use the spot price as a benchmark to gauge trends and make buying or selling decisions. However, in practice, investors typically pay above the spot price to cover additional costs like shipping, insurance, and markups [1]. The spread between the bid and ask prices also serves as a useful metric: a narrower spread indicates higher demand and liquidity.

While silver is not traditionally a high-return investment compared to equities, it has long been considered a hedge against inflation and a means of preserving purchasing power. Historical data shows that over the long term, silver has significantly underperformed the S&P 500, with its value lagging by roughly 96% since 1921 [1]. Nevertheless, in periods of economic and geopolitical uncertainty, silver can act as a stabilizing force in a diversified portfolio.

Advisors typically recommend that silver not make up more than 10–15% of an investor’s portfolio, with total exposure to precious metals generally capped at 20% or less [1]. For those interested in IRA-qualified silver investments, the metal must be 99.9% pure and stored with an IRS-approved custodian. This excludes certain pre-1965 U.S. coins, known as "junk silver," from IRA eligibility, even though they may hold numismatic or collectible value [1].

The current environment—characterized by constrained supply, rising industrial demand, and investor interest—has contributed to the upward trajectory of silver prices in 2025. Analysts have pointed to these factors as potential drivers of further gains, with some predicting the likelihood of silver reaching record highs in the coming months [1]. As such, silver remains an accessible and potentially rewarding entry point into the world of precious metal investing, particularly for those seeking a balance between affordability and exposure to tangible assets.

Source: [1]Current price of silver as of Tuesday, August 26, 2025 (https://fortune.com/article/current-price-of-silver-08-26-2025/)