The Price Of Silver Has Changed A Lot In The Last Year

Silver has long been a valued metal, similar to gold, with uses in jewelry and many of the electronics we use daily. In recent years, it has also become more popular as an investment vehicle for building wealth. In fact, according to the Gold Bank, demand for silver in 2025 has doubled from last year, with first-time buyers making up a large portion of the new demand. This increased demand, along with its continued use as a precious and industrial metal, has caused the price of silver to rise significantly over the course of the year.

As of October 9, 2025, the price of silver has risen 68.85% over the course of the year, according to Strategic Metal Invest, with the price over $1,500 per kilogram at the time of writing. While undoubtedly an outstanding performance, its performance over the last five years has been even more impressive. Since January 1, 2020, the price of silver has increased by 159.59%.

The price of silver is influenced by various factors, similar to how the price of gold is controlled. But in the past few years, two particular factors have helped skyrocket its value: consumer investing and manufacturing demand. Despite being physical assets, silver and gold can be purchased through exchange-traded funds (ETFs) and held in an investment account. This method of silver investing has been particularly appealing to retail investors seeking to squeeze out greater returns in their portfolios. But buying physical silver has also been a hot choice in the past few years. By buying bars of silver, retail investors seek to hedge against inflation and economic turmoil.

Just as important to silver's price over the past year has been increased demand for the precious commodity from electronics manufacturers. Because of its electrical and thermal conductivity, silver is often a crucial component in hardware such as circuit boards, semiconductors, batteries, and solar panels, just to name a few. According to Seeking Alpha, industrial silver demand rose 4% in 2024. But as more companies continue to build out massive data centers that house dedicated AI semiconductors, demand for silver may increase, further driving up its price.