Silver Is Reaching Record Highs: What This Means for Your Dollar
Written by
Travis Woods
Edited by
Zuri Anderson
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While markets are in flux, tariffs loom and economic uncertainty seems to rule the day, there’s simply no mistaking it — silver is having a great 2025.
While the precious metal was previously forecasted a value of around $26.95 per ounce for the year by the world’s largest trade bank HSBC, silver’s valuation has surged far beyond that and is currently carries an average price of $35,14 per ounce, per Reuters.
Additionally, Yahoo Finance has noted a commiserate rise in the value of gold over the summer, with both metals rallying despite the continued rollercoaster ride the markets have been on.
Silver’s value has maintained a steady rise, growing nearly 25% in the last eight months thanks to investor interest and industrial growth, per Sprott. While not quite record-breaking yet (that would be $49 per ounce, in 1980), it’s getting close.
With this boost in silver’s value, there comes a crucial question: What does this mean for your dollar?
Silver Is Now More Expensive
The first and most obvious implication of silver’s increased value is that it is now, quite simply, more expensive to purchase. Those who invest in silver will be paying more for it. To put it another way, the amount of silver you’d own for $500 in 2025 is less than what you’d purchase for the same amount in 2024, as the dollar is not growing with the metal.
A Weakening Dollar
Speaking of the dollar not buying as much: Periods of increased previous metal values tend to inversely indicate a period of weak currency, as the dollar’s purchasing power inherently diminishes in the face of silver (and gold’s) rising value.
Inflation on the Rise?
Historically, an increase in silver’s value often hints at (or outright reflects) investor skittishness about inflation. Silver’s rise is often concomitant with investors preparing for an expected increase in inflation because of the dollar’s devaluation. While not an guarantor of inflation, a steep rise in silver’s value should be taken as a serious financial omen, at the very least.
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