Silver Surges 33.41% Year-Over-Year Amid Industrial Demand and Economic Uncertainty

Silver closed at $38.55 per ounce as of 5:15 p.m. Eastern Time on Monday, August 25, 2025, marking a 0.85% decline from its price the previous day but a strong 33.41% increase year-over-year [1]. The price has seen a modest drop of 1.29% from a month ago, highlighting its volatility compared to gold and other precious metals [1].

This performance places silver as one of the standout performers in the precious metals market this year, with a year-to-date gain of nearly 25% [1]. The upward trajectory is attributed to a combination of factors including growing industrial demand and increasing investor interest amid global economic uncertainty. Analysts suggest that silver’s role in green technologies—particularly in solar energy—could drive further appreciation in the coming years [1].

Compared to gold, which traded at $3,365.52 per ounce, silver remains a more accessible entry point for investors [1]. Platinum and palladium, at $1,342.70 and $1,094.93 per ounce respectively, also showed elevated prices but remain less liquid in the global market, contributing to their heightened volatility [1].

Silver’s price movements reflect its dual identity as both a store of value and an industrial commodity. Unlike gold, which is largely used as an inflation hedge, silver’s value is also influenced by demand from electronics, medical devices, and other manufacturing sectors [1]. This dual nature makes silver more sensitive to macroeconomic shifts, particularly in the industrial and manufacturing space.

Investors have multiple avenues to gain exposure to silver, including physical bullion, coins, and ETFs. For those looking to avoid the logistics of storing and insuring physical silver, exchange-traded funds offer a convenient alternative [1]. The “three nines fine” standard—requiring 99.9% purity—applies to silver bullion traded on exchanges, with anything less generally considered collectibles or industrial-grade.

The broader market also reflects increased interest in precious metals as a hedge against inflation and geopolitical uncertainty. While silver has outperformed gold in 2025, it is important to note that its historical performance relative to the S&P 500 remains weaker, with silver losing around 96% of its value over the long-term compared to traditional equities [1]. However, in the current environment, its volatility is increasingly seen as an advantage rather than a drawback.

Experts suggest that allocating between 10% and 15% of a portfolio to silver could offer a balanced approach to diversification, with a total precious metals exposure not exceeding 20%. While silver can be held in an IRA under certain conditions—such as 99.9% purity and IRS-approved storage—other forms of silver, such as pre-1965 U.S. coins, are not eligible [1]. These coins, however, can still be valuable investments due to their collectible and numismatic appeal.

Source: [1]Current price of silver as of Monday, August 25, 2025 (https://fortune.com/article/current-price-of-silver-08-25-2025/)