The price of Silver has surged 27% this year to a more than decade high. This price jump has sparked a "Silver rush" across the United States, with investors flocking to coin shops, Metal dealers, and jewelry stores to cash in on their silver coins, silverware, and silver bars, with some even rummaging through coin jars for silver coins minted before 1965.
Silver prices have surged 27% this year to a more than decade high, driven by dual demand from investors and industrial buyers, allowing this precious metal, long overshadowed by Gold, to regain market attention.
Unlike Gold, which is primarily used for wealth storage, about 80% of Silver demand comes from the manufacturing sector, especially strong demand from CECEP Solar Energy manufacturers providing additional support for prices. This month, Silver prices have risen 12% so far. As of the time of this writing, spot Silver reached $35.94.
The surge in prices has sparked a "silver rush" across the United States. Investors are flocking to coin shops, metal dealers, and jewelry stores to cash in on their silver coins, silverware, and silver bars; some are even rummaging through coin jars for silver coins minted before 1965.
Michael Widmer, head of metal research at Bank of America, stated that Silver consumption in cutlery and electronics remains steady, with ongoing growth in demand from solar panel manufacturers. However, analysts warn that if prices are too high, manufacturers may turn to cheaper metal alternatives.
Industrial demand has become the price engine.
Unlike Gold, which is primarily used for wealth storage and jewelry manufacturing, approximately 80% of Silver demand comes from the manufacturing industry. Analysts previously anticipated that Trump's trade war and adjustments to renewable energy incentive policies would impact Silver demand.
This forecast seemed accurate when Trump launched the tariff offensive in April. Silver prices fell alongside Stocks, Oil, and other Assets, prompting investors to Buy Gold in large quantities. However, prices rebounded strongly this month, triggering more sellers to flood the market.
Michael Widmer, head of Metal research at Bank of America, noted that silver consumption for cutlery and electronics remains stable, with demand from CECEP Solar Energy manufacturers continuing to grow. However, Greg Shearer, head of Metal research at JPMorgan, warned that some countries' solar industries might preemptively procure ahead of trade restrictions and changes in US Energy policy, facing the risk of demand falling in the latter half of the year.
Investors are betting on prices continuing to rise.
The iShares Silver Trust Exchange-Traded Fund, favored by individual investors, has added nearly 11 million ounces of Silver this year to meet demand. Some investors choose to hold physical Silver directly.
Andrei Hnedchyk, owner of Honest Coin Shop in Union City, New Jersey, said foot traffic has increased by about 20%, mainly from 'Silver Hoarders'—investors hoarding precious metals to hedge against economic uncertainty.
Russ Bega, COO of Chicago coin dealer Harlan J. Berk, reported that many customers regularly buy small amounts of Silver despite the high prices, worried about missing out on the current rally. He sold two 1000-ounce silver bars last month and recently sold another 1500 ounces to another customer. The company's monthly Silver bar procurement has more than doubled.
"Silver hunting" craze sweeping across the United States.
The soaring prices have made searching for old silver coins worthwhile. A 25-cent coin minted before 1965 has a melt value of over $6.50, far exceeding its face value. Florida Governor Ron DeSantis recently signed a bill allowing certain gold and silver coins to be used as legal tender alongside traditional currency.
Bega revealed that some sellers who bought Silver decades ago at ten dollars per ounce are emptying the safe at the nearby Bank of America, which is about to close. Another customer is a demolition worker who found old silver coins worth over 0.02 million dollars inside the walls of a house.
Daniel Herzner, who operates a heritage jewelry business in White Plains, New York, said customers frequently call wishing to sell inherited or unwanted jewelry and silverware. "They would rather liquidate it," he said.
Although prices may continue to rise this year, Analysts believe it is difficult to break the record of 48.70 dollars per ounce set in 1980. At that time, the Hunt brothers attempted to control the Silver market through borrowing, causing the price to surge from about 11 dollars and then crash. Considering inflation, the 1980 record is equivalent to over 200 dollars today.
