Silver Price Surge: Why Silver Has Tripled in Just One Year

Just a year ago, silver was trading at around $30 per troy ounce. Today, prices have already moved beyond $94, representing almost a threefold increase in just twelve months. Moves of this magnitude are rare even within the precious metals market and place silver firmly among the best-performing assets of the past year.

How Does This Compare to Previous Silver Bull Markets?

The current rally echoes the historic price surge of 1980, when silver climbed to $55–59 per ounce, nearly doubling within a single year. During that same period, gold rose by approximately 60%.

Historically, silver tends to follow gold’s price direction but with much greater volatility. At the previous cycle peak:

• Gold roughly tripled in price
• Silver rose by more than seven times

This pattern reflects silver’s tendency to “catch up” with gold, often rapidly and aggressively once momentum builds.

Live silver price chart

Has Silver Reached Its Real All-Time High?

When adjusted for inflation, silver’s 1980 peak would equate to around $190 per ounce in today’s money. This means that, despite the recent rally, silver market price has not yet reached its previous real (inflation-adjusted) high.

By contrast, gold surpassed its inflation-adjusted peak in 2024 and has since moved on to fresh record highs. From a historical perspective, this suggests that silver may still have significant room to run in the existing market conditions.

Read more on the topic here: Silver as a Shield of Purchasing Power

Why Does Silver Move Faster Than Gold?

1. A Much Smaller Market

Silver’s total investment market is estimated at around $200 billion, while gold’s market value runs into the trillions. As a result, relatively small capital inflows can have a much larger price impact on silver.

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2. Strong Industrial Demand

Unlike gold, silver bullion is not only a store of value. It plays a critical role in modern industry, including:

• Solar panels and photovoltaics
• Electric vehicles
• Semiconductors and electronic components
• Energy grids and AI-related infrastructure

This dual role, monetary metal and industrial input, amplifies price movements during periods of strong economic or technological investment.

3. Persistent Supply Deficits

Silver supply has struggled to keep pace with demand. The market is now in its fifth consecutive year of deficit, with an estimated cumulative shortfall of around 820 million ounces.

Global mine production is growing by only around 1% per year, making silver supply structurally inelastic. In simple terms, higher prices do not quickly result in higher production, a dynamic that can intensify price rallies.

Could Silver Go Much Higher?

Historically, silver traded at a gold-to-silver ratio of around 15:1 for long periods. While today’s ratio is significantly higher, a reversion toward historical norms would imply much higher silver prices if gold remains elevated.

“The price of silver has historically followed gold at a ratio of around 15:1. Based on that relationship, it is entirely possible that within the next five years we could see silver trading at $300 per ounce or more,” commented Max Baklayan of Tavex.

Key Takeaways

• Silver has tripled in price in one year, outperforming most major asset classes
• It remains below its inflation-adjusted all-time high, unlike gold
• A small market size, industrial demand, and persistent supply deficits amplify price movements
• Historically, silver has tended to outperform gold during late-stage bull markets