Silver as an investment

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Various examples of American coins used as silver investments, including pre-1964 circulating silver coins and American Silver Eagle bullion coins

Silver may be used as an investment like other precious metals. It has been regarded as a form of money and store of value for more than 4,000 years, although it lost its role as legal tender in developed countries when the use of the silver standard came to an end in 1935. Some countries mint bullion and collector coins, however, such as the American Silver Eagle with nominal face values.[1] In 2009, the main demand for silver was for: industrial applications (40%), jewellery, bullion coins and exchange-traded products.[2][3] In 2011, the global silver reserves amounted to 530,000 tonnes.[4]

When compared to the other two main precious metals, platinum and gold, silver is the least scarce among them. Platinum is about 139 times rarer than silver in terms of mined and available platinum to silver, and gold is about 8 times rarer than silver.

Millions of mint issued silver bullion coins, such as the Canadian Silver Maple Leaf, the American Silver Eagle, or the British Silver Britannia, are purchased as investments each year. While these bullion coins are legal tender, their inherent value is tied to the price of silver and so are rarely traded at face value.[5] However, "junk silver" coins, which were originally minted as currency, can sometimes be found in circulation and are common targets in the practice of coin roll hunting.

## Contents

* 1 Price
* 1.1 Influences
* 1.2 History
* 1.2.1 1979–1980
* 1.2.2 2010–2011
* 1.2.3 2025–2026
* 2 Investment vehicles
* 2.1 Bars
* 2.2 Coins and rounds
* 2.3 Exchange-traded products
* 2.4 Accounts
* 2.5 Derivatives, CFDs and spread betting
* 2.6 Mining companies
* 3 Taxation
* 4 See also
* 5 References
* 6 External links

## Price

The price of silver from 1792 to 2005. The spike in 1980 reflects the events of Silver Thursday. Price of silver 1968–2025 in US dollars

The price of silver is driven by speculation and supply and demand, like most commodities. The price of silver is notoriously volatile compared to that of gold because of the smaller market, lower market liquidity and demand fluctuations between industrial and store of value uses. At times, this can cause wide-ranging valuations in the market, creating volatility.[6]

Silver often tracks the gold price due to their shared histories as monetary metals, although the ratios vary.[7] The gold/silver price ratio is often analyzed by traders, investors, and buyers and in fact might be the oldest continuously tracked exchange rate in history[8].[9][10]

The crustal ratio of silver to gold is 17.5:1.[11] This is a physical reality. Over the centuries, the relative values of silver to gold, which are a social and institutional construct rather than a physical reality, have diverged significantly. In 5th century Athens, gold was valued 14x more highly than silver for a ratio of 14:1.[12] In Roman times, the price ratio was set at 12 (or 12.5) to 1.[13] In 1792, the gold/silver price ratio was fixed by law in the United States at 15:1,[14] which meant that one troy ounce of gold was worth 15 troy ounces of silver; a ratio of 15.5:1 was enacted in France in 1803.[15] The average gold/silver price ratio during the 20th century, however, was 47:1.[16]

The price of silver has risen fairly steeply since September 2005, being initially around $7 per troy ounce, but reaching $14 per troy ounce for the first time by late April 2006, and the average price of the month was $12.61 per troy ounce. As of March 2008, it hovered around $20 per troy ounce.[17] However, the price of silver plummeted 58% in October 2008, along with other metals and commodities, due to the effects of the credit crunch.[18] By April 2011, silver had rebounded to reach a 31-year high at $49.21 per ounce on April 29, 2011 due to concerns about monetary inflation and the solvency of governments in the developed world, particularly in the Eurozone.[19]

### Influences

The price of silver is influenced by a variety of factors.

* The silver market is much smaller and less liquid than the gold market, with the London gold bullion market turning over 18 times more monetary value than its silver market.[20] Small, illiquid markets have inherently higher volatility.
* Due to the properties of silver, it has a major role in the manufacturing of photovoltaics, RoHS compliant solder, clothing and medical uses. Other new applications for silver include RFID tags, wood preservatives, water purification and food hygiene.[21] Data from 2010 reveals that a majority of silver is being used for industry (487.4 million ounces), jewelry (167 million ounces), and investments (101.3 million ounces).[22]
* Silver, like all precious metals, may be used as a hedge against inflation, deflation or devaluation.[23]
* Public sentiment regarding silver as a hedge against inflation may be influenced by marketing campaigns from silver producers and affiliates.
* Unlike gold, a significant portion of silver production is a byproduct of mining other metals like copper, lead, and zinc. This means silver supply is often less responsive to price changes. Disruptions in base metal mining can unexpectedly reduce silver output, tightening supply and increasing prices.[24]

### History

The highest recorded silver prices were:

| 1980 | 2011 | 2025 | 2026

|
|
|
|

London LBMA (Close)  | $49.45 (January 18)  | $48.7 (April 28)  | $69.74 (December 23)[25] | $99.00 (January 23)
London LBMA (Intraday)  | $50.5 (January 18)  |
New York COMEX (Close)  | $48.7 (January 17)  | $48.55 (April 29)  | $78.67 (December 26)  | $101.33 (January 23)
New York COMEX (Intraday)  | $50.36 (January 18)  | $49.82 (April 25)  | $82.40 (January 6 2025)[26] | $103.26 (January 23)
Chicago CBOT (Close)  |  |
Chicago CBOT (Intraday)  | $52.8 (January 18)  |

#### 1979–1980

In part due to the actions of the Hunt brothers (Nelson Bunker Hunt, William Herbert Hunt, and Lamar Hunt), the price for silver Good Delivery bars jumped from about $6 per troy ounce to a record high of $49.45 per troy ounce in the United States on January 18, 1980,[27] representing an increase of 724%. The highest price of physical silver is hard to determine, but based on the price of common silver coins, it peaked at about $40/oz.[28]

On January 7, 1980, in response to the Hunts' accumulation, the US Commodity Exchange (COMEX) suddenly adopted "Silver Rule 7", placing heavy restrictions on the purchase of the commodity on margin, causing massive liquidations and enormous downward pressure on the price. The Hunt brothers had borrowed heavily to finance their purchases, and as the price began to fall again, dropping over 50% in just four days, due to the sudden forced liquidation of margin positions, they became unable to meet their obligations, causing further panic in the precious metal markets.

The Hunts were never found guilty of any criminal wrongdoing, although they lost a civil suit in connection to the event. The event also caused the Hunts' fortune to dwindle, culminating in them filing for bankruptcy. In 1989, they agreed to a civil settlement with the US Commodity Futures Trading Commission, paying out fines, and agreeing to a ban from trading commodities.

#### 2010–2011

There was such immense risk to the world economy that investors drove the prices up by buying defensive commodities (e.g. silver or gold). When the short-term risks were believed to have subsided, many investors reallocated their assets back into yielding (dividend or interest) investments such as stocks or bonds.

The 2011 United States debt ceiling crisis was a major factor in the rise of silver prices. The 2010 U.S. midterm elections highlighted policy differences between President Obama vs. the Tea Party movement. The price of silver concurrently rose from $17 to $30 as the elections approached. In late 2010 and 2011, silver found a "new normal" between $25 and $30.

In 2011, Republicans in US Congress demanded deficit reduction be part of legislation raising the nation's debt-ceiling. The resulting contention was resolved on 2 August 2011 by the Budget Control Act of 2011.

During the first few months of 2011, Moody's and S&P both downgraded the outlook on US finances; this was a major shock to the financial world and resulted in silver's climb to $50.

* On April 18, 2011, U.S.-based rating agency S&P issued a "negative" outlook on the U.S.'s "AAA" (highest quality) sovereign-debt rating for the first time since the rating agency began in 1860, indicating there was a one-in-three chance of an outright reduction in the rating over the next two years.
* On April 25, 2011, silver traded $49.8 per ounce in the New York spot market.

On August 5, 2011, S&P issued the first ever downgrade in the federal government's credit rating, citing their April warnings, the difficulty of bridging the parties and that the resulting agreement fell well short of the hoped-for comprehensive 'grand bargain'.[29] The credit downgrade and debt ceiling debacle contributed to the Dow Jones Industrial Average falling nearly 2,000 points in late July and August. Following the downgrade itself, the DJIA had one of its worst days in history and fell 635 points, on August 8.[30]

Then, as it became likely that U.S. Secretary of Treasury Timothy Geithner would order the treasury to use extraordinary measures to delay the crisis, silver settled back at $35. As the debacle continued during the summer, silver moved in the range of $33 to $43.

As it became clear that the "financial apocalypse" would be delayed by late summer, many investors dumped silver and commodities and moved back into U.S. equities. The price of silver quickly went back to $30 and declined below 2010 levels in the next few years.

Whether classifying silver's movement as a 'bubble' (seen when comparing silver with gold) has been debatable, with Peter Schiff denying that a bubble ever existed and asserting that the factors that led to the increase in the silver price have not yet been resolved.

#### 2025–2026

Silver prices rose sharply during 2025, supported by a mix of industrial and investment demand and recurring concerns about limited supply. The year began with the LBMA Silver Price near $29.41 per troy ounce and then advanced through the first half of the year, moving above $35 per ounce in early June and reaching its highest level since February 2012 in spot trading.[31]

In December 2025, spot prices accelerated further and set new nominal records. Reuters reported that silver reached a record $66.87 per ounce on December 17 and then rose again to an intraday high of $77.40 per ounce on December 26. Reasons cited for silver demand exceeding supply include record industrial usage in the prior year, including demand tied to photovoltaic applications, electrification, and the artificial intelligence boom, as well as an ongoing structural market deficit.[32][33]

## Investment vehicles

### Bars

1,000 ozt (31.1 kg) silver bar

A traditional way of investing in silver is by buying actual bullion bars. In some countries, like Switzerland and Liechtenstein, bullion bars can be bought or sold over the counter at major banks.

Easily stackable, the flat and rectangular shapes of silver bars makes them ideal for storage in a home safe, in a safe deposit box at a bank, or in storage with a bank or dealer (whether "allocated" [also known as non-fungible] or "unallocated" [fungible or pooled]).

Silver bars can either be cast (poured into molds), or minted (die-struck); both categories often involve the production of bars with intricate decorative designs that are attractive to collectors, often referred to as "art bars".

Various sizes of silver bars are 1, 10, 100 and 1,000 troy ounces, 100 gram (3.215 troy ounces) and one kilogram (32.15 troy ounces), as well as other sizes.

### Coins and rounds

American Silver Eagle bullion proof coin

The term "coin" typically refers to a metallic piece minted by a sovereign government and holds the status of legal tender within its country of origin. Coins are distinguished by their official recognition and carry a minimum face value, which represents the denomination assigned to them.[34]

Silver coins may be minted as either fine silver or junk silver. Fine silver coins minted by governments are typically very pure, such as the one-ounce, 99.99% Canadian Silver Maple Leaf. As they are legal tender Government-minted silver coins often enjoy special taxation treatment in their country of origin.

The term junk silver signifies silver coins without a numismatic premium. In the United States, this is taken to mean pre-1964 90% silver 10-cent ('dimes'), quarters and half-dollars; $1 face value of those circulated coins contains 0.715 troy ounce (22.2 grams) of fine silver.[35][36] All 1965–1970 and some 1976 Kennedy half dollars are minted with a 40% silver composition. War nickel is the name given to certain 1942–1945 5-cent coins ('nickels') minted with a 35% silver composition.

Other countries, such as Australia, Canada, Mexico, Switzerland and the United Kingdom, also minted junk silver coins in the past. All these countries (except Mexico and Switzerland) initially minted sterling silver coins for circulation, before the coins' silver content was reduced: Australia to 50% in 1946, Canada to 80% in 1920 and the United Kingdom to 50% near 1920. Mexico's case was rather unique, in that while 1 peso coins had its silver content reduced to 50% in 1947, those with higher denominations (e.g. 5 pesos, 10 pesos) continued to be minted with 72–90% silver composition until the last silver coins were minted in 1979.

Unlike coins, rounds are privately minted bullion that look similar to coins, but do not have a face value and are not legal tender.

### Exchange-traded products

Silver exchange-traded products represent a quick and easy way for an investor to gain exposure to the silver price, without the inconvenience of storing physical bars. Silver ETPs include:

* iShares Silver Trust launched by US investment company iShares is the largest silver ETF on the world market with over 340 million troy ounces of silver in storage.[37]
* ETFS Physical Silver and ETFS Silver Trust launched by ETF Securities.
* Sprott Physical Silver Trust is a closed-end fund created by Sprott Asset Management. The initial public offering was completed on November 3, 2010.[38]

### Accounts

Most Swiss banks offer silver accounts where silver can be instantly bought or sold just like any foreign currency. Unlike holding physical silver, the customer has a claim against the bank for a certain quantity of metal. Digital gold currency providers and internet bullion exchanges, such as OneGold, BullionVault or GoldMoney, offer silver as an alternative to gold. Some of these companies allow investors to redeem their investment through the delivery of physical silver.[39]

### Derivatives, CFDs and spread betting

In the U.S., silver futures are primarily traded on COMEX (Commodity Exchange), which is a subsidiary of the New York Mercantile Exchange. In November 2006, the National Commodity and Derivatives Exchange (NCDEX) in India introduced 5 kg silver futures.

### Mining companies

## Taxation

See also: Finance:Taxation of precious metals

Other taxes such as capital gains tax may apply for individuals depending on country of residence (tax status) and whether the asset is sold at increased nominal value. For example, in the United States, silver is taxed only when sold for a profit, at a special collectibles capital gain tax rate (the normal income tax rate, subject to a maximum of 28% for silver held over 1 year[40]).[clarification needed] In 2011, the Utah Legal Tender Act recognized U.S.-minted silver and gold coins as legal tender within Utah, so that they may be used to pay any debt in Utah without being subject to Utah's capital gains tax (although such a tax would still apply for federal tax purposes, as such a state law cannot override federal law).[41]

## See also

* Diamonds as an investment
* Full-reserve banking
* Metallism
* Precious metals as an investment
* Gold as an investment
* Palladium as an investment
* Platinum as an investment

## References

1. ↑ "American Silver Eagle". The United States Mint. http://www.usmint.gov/mint_programs/american_eagles/?Action=american_eagle_silver.
2. ↑ "Supply & Demand". The Silver Institute. http://www.silverinstitute.org/supply_demand.php.
3. ↑ "2000pres". The Silver Institute. http://www.silverinstitute.org/2000pres.php.
4. ↑ Silberreserven und Preise Retrieved 28. December 2012.
5. ↑ "Legal Tender Guidelines | The Royal Mint". https://www.royalmint.com/aboutus/policies-and-guidelines/legal-tender-guidelines/.
6. ↑ "The Case for Silver | Gold News". Goldnews.bullionvault.com. March 25, 2010. http://goldnews.bullionvault.com/silver_case_032520106.
7. ↑ Solt, Michael E.; Swanson, Paul J. (July 1981). "On the Efficiency of the Markets for Gold and Silver". The Journal of Business (The University of Chicago Press) 54 (3): 453–478. https://www.jstor.org/stable/2352348. Retrieved 15 October 2025. ""sample correlation coefficient between gold and silver price changes is .83"".
8. ↑ "Live Gold-Silver Ratio Calculator". MetalMetric. https://metalmetric.com/tools/gold-silver-ratio.
9. ↑ "Is Silver Nailed to Gold? | Gold News". Goldnews.bullionvault.com. September 20, 2010. http://goldnews.bullionvault.com/gold_silver_092020102.
10. ↑ "A Historical Guide to the Gold-Silver Ratio" (in en). https://www.investopedia.com/articles/investing/080316/historical-guide-goldsilver-ratio.asp.
11. ↑ Stanley W. Ivosevic (1984). Gold and Silver Handbook on Geology, Exploration, Development, Economics of Large Tonnage, Low Grade Deposits. University of California. pp. 160. ISBN 0961135239.
12. ↑ Thompson, Wesley E. (1964). "Gold and Silver Ratios at Athens During the Fifth Century". The Numismatic Chronicle and Journal of the Royal Numismatic Society 4: 103–123. https://www.jstor.org/stable/42662586. Retrieved 15 October 2025.
13. ↑ Morteani, Giulio; Jeremy Peter Northover (1994). Prehistoric Gold in Europe: Mines, Metallurgy and Manufacture. New York: Springer-Verlag. p. 37. ISBN 978-0-7923-3255-8.
14. ↑ "The Coinage Act of April 2, 1792" (in en). http://www.constitution.org/uslaw/coinage1792.txt.
15. ↑ "The ratio gold and silver from 1800 1900". Dani2989.com. http://www.dani2989.com/gold/goldsirverratio180027092004gb.htm.
16. ↑ Chaize, Dr. Tomas. "Study of the report enters the ratio production and price since 1900 of the gold and the silver". Dani2989.com. http://www.dani2989.com/gold/ratiogoldsilvergb030105.htm.
17. ↑ "24-hour Spot Chart – Silver". Kitco.com. http://www.kitco.com/charts/livesilver.html.
18. ↑ "Mineweb.com – The world's premier mining and mining investment website Where are the silver bulls? – SILVER NEWS". Mineweb. http://www.mineweb.net/mineweb/view/mineweb/en/page32?oid=73294&sn=Detail.
19. ↑ "Wall Street Journal – PRECIOUS METALS: Economic, Political Worry Fuel Gold, Silver Rally". Wall Street Journal. April 8, 2011. https://online.wsj.com/article/BT-CO-20110408-710701.html.
20. ↑ Gross, Sybilla; Burton, Mark (October 12, 2025). "Silver Roars Higher as Short Squeeze Rocks the London Market". Bloomberg (Manhattan, New York City, New York: Bloomberg L.P.). https://www.bloomberg.com/news/articles/2025-10-12/silver-extends-gains-on-short-squeeze-as-gold-rallies-to-record. Retrieved 15 October 2025. ""The silver market “is less liquid and roughly nine times smaller than gold’s, amplifying price moves,” Goldman Sachs Group Inc analysts wrote in a note."".
21. ↑ "Alchemist Issue 57". http://www.lbma.org.uk/assets/alc57_prospects_silver_supply.pdf.
22. ↑ Silver Essentials | The Silver Institute
23. ↑ "History of Silver as an Investment". Cornerstone Asset Metals. http://www.cornerstoneassetmetals.com/silver/.
24. ↑ "Silver: A Precious Metal with a Structural Twist" (in en). https://www.siIver.com/p/silver-a-precious-metal-with-a-structural-twist.
25. ↑ https://en.macromicro.me/series/7949/lbma-silver-price
26. ↑ "Comex Silver | Live Quotes, Prices, Charts, News | COMEX Live" (in en-US). https://comexlive.org/silver/.
27. ↑ "About the Record High in Silver". http://about.ag/SilverHigh.htm.
28. ↑ "U.S. Silver Coins: When They Ended and What They're Worth". November 26, 2013. https://coinsite.com/us-silver-coins-when-they-ended-and-what-theyre-worth.
29. ↑ "United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative". http://www.standardandpoors.com/ratings/articles/en/us/?assetID=1245316529563.
30. ↑ Sweet, Ken (August 8, 2011). "Dow plunges after S&P downgrade". CNNMoney. https://money.cnn.com/2011/08/08/markets/markets_newyork/index.htm.
31. ↑ https://www.reuters.com/business/silver-surges-past-35oz-level-hit-more-than-13-year-high-2025-06-05/
32. ↑ https://silverinstitute.org/silver-industrial-demand-reached-a-record-680-5-moz-in-2024/
33. ↑ https://www.reuters.com/world/india/silver-tops-75-gold-platinum-surge-records-2025-12-26/
34. ↑ "What Are the Differences Between Coins and Rounds? | Silver Bullion" (in en). 2019-02-13. https://www.silverbullion.com.sg/Articles/Detail/What-Are-the-Differences-Between-Coins-and-Ro/10515.
35. ↑ "1964 D Washington Quarter". http://www.coincommunity.com/us_quarter_dollars/1964_d_washington_quarter.asp.
36. ↑ "Junk Silver Calculator – Live Melt Value by Coin Type". https://metalmetric.com/melt/junk-silver-calculator. "Per $1.00 face value of circulated 90% silver coins: 0.715 troy ounces of pure silver"
37. ↑ "iShares Silver Trust". http://us.ishares.com/product_info/fund/overview/SLV.htm.
38. ↑ "Sprott Completes Initial Public Offering of Sprott Physical Silver Trust". http://www.sprottphysicalsilvertrust.com/News_Details.aspx?cid=6.
39. ↑ Silver, Buy or Sell?
40. ↑ "Information on 28% Capital Gains Tax Rate for Silver and Gold". http://about.ag/28Percent.htm.
41. ↑ Utah Law Makes Coins Worth Their Weight in Gold (or Silver) , The New York Times, May 29, 2011.

## External links

* Current London Silver Fixing by the London bullion market

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