Silver has done what many thought impossible: it broke through $70 per ounce for the first time in history, capping a rally that has seen the metal gain 125% in 2025—outpacing even gold's spectacular run.

The precious metal traded at $70.45 on Tuesday, up 2.05% from the previous session. At the start of the year, silver was hovering near $30. It has now more than doubled, smashing through its 1980 and 2011 peaks around $50 to reach uncharted territory.

Why Silver Is Outperforming Gold

While gold benefits primarily from its role as a monetary safe haven, silver has a dual nature: it's both a precious metal and an industrial commodity. That industrial demand is supercharging the rally.

Solar Power: Silver is essential for photovoltaic cells, and the global solar buildout has accelerated dramatically. Each solar panel requires significant silver content, and installations are running at record pace.

Electric Vehicles: EVs use considerably more silver than traditional vehicles, primarily in electrical contacts and battery components. As EV adoption accelerates globally, so does silver demand.

Data Centers: The AI boom has triggered a construction surge in data centers, which rely heavily on silver for electrical connections and thermal management.

The Supply Squeeze

On the supply side, silver faces a crunch. London vault volumes have fallen by roughly a third to 22,126 metric tons—the lowest in years. Tight conditions are expected to persist through 2026.

Unlike gold, which is primarily held and recycled, much of the silver used in industrial applications is consumed and difficult to recover. This creates a structural deficit when demand surges.

The Investment Case

Silver has historically been more volatile than gold, and this rally is no exception. The metal can move 3-5% in a single day, which creates both opportunity and risk.

For investors considering silver exposure:

  • Physical silver and silver ETFs provide direct exposure
  • Silver mining stocks like Hecla (up nearly 300% in 2025) offer leveraged exposure
  • Position sizing matters—silver's volatility demands respect

The Bottom Line

Silver's breakout above $70 marks a historic moment for the metal. The combination of safe-haven demand, industrial consumption, and supply constraints has created a perfect storm. Whether you're an investor or simply watching from the sidelines, silver's message is clear: the energy transition and AI revolution are consuming real resources, and prices are adjusting accordingly.