Silver prices surged to historic levels on Friday, nearing $78 an ounce for the first time, as a broad rally in precious metals continued amid expectations of interest rate cuts and ongoing economic uncertainty.
The metal’s rapid ascent has outpaced gains in gold and platinum, marking one of the strongest periods for silver in decades.
According to the New York Commodity Exchange, silver was trading around $77.64, setting a new all-time high.
The surge places silver up more than 146% over the past year, putting it on track for its biggest annual gain since 1979.
Gold and platinum also reached record levels, reinforcing the strength of the broader precious metals market.
Analysts attribute the rally to a combination of anticipated U.S. Federal Reserve rate cuts, constrained supply, and strong investment demand.
Silver has also benefited from rising demand linked to AI data centers and its designation as a U.S. critical mineral.
Reuters reported spot silver jumping as much as 7.5% in a single session, reflecting heightened volatility in thin year-end markets.
Gold rose just over 1.2% to above $4,530 an ounce, while platinum surged nearly 10% to record territory.
Peter Grant of Zaner Metals said expectations for further Fed easing, a weak dollar, and geopolitical tensions are sustaining the trend.
The sharp rise has drawn increased attention from both institutional and retail investors.
The Wall Street Journal reported that amateur investors, including some active on Reddit, have flocked to silver amid the price surge.
Some analysts caution that silver can experience sharp cycles of gains and declines.
Goldman Sachs has warned of greater volatility and downside risk for silver compared with gold.
Others remain optimistic that elevated prices could persist into the new year amid inflation pressures and economic uncertainty.
All major precious metals recorded weekly gains, with platinum posting its strongest weekly rise on record.