As of 6:45 a.m. Eastern Time today, the price of silver is at $60.25 per ounce. This marks an increase of $1.54 compared to just 24 hours ago and over a $10 rise from the previous year.
Historical silver performance
Looking back at historical trends, it’s clear that silver’s long-term returns don’t hold up against the stock market. Since 1921, silver has actually lagged behind the S&P 500 by about 96%. So, if you had invested equally in both silver and stocks back then, today your silver investment would be significantly less valuable.
However, silver is often seen as a safeguard against inflation, known as a “store of value.” It tends to hold its purchasing power better when inflation rates rise.
It’s worth noting that silver’s price can be more volatile than gold, largely due to its various industrial uses, from electronics to medical devices. Gold, meanwhile, is primarily viewed as a safe-haven asset.
What does “spot silver” mean?
The term “spot silver” refers to the current market price at which silver can be bought or sold instantly. In reality, buyers usually pay above the spot price to account for additional costs like shipping, insurance, and other fees.
The spot price effectively reflects market demand—if it’s higher, there is likely more interest from buyers.
What is “price spread” in silver trading?
The “price spread” indicates the difference between the ask (buy) and bid (sell) prices. Here’s how it works:
- Ask price: The price you pay to buy silver.
- Bid price: The amount you receive when selling.
Narrow spreads suggest that demand for silver is high.
How to invest in silver
You have a couple of options for investing in silver: you can buy it physically or invest through ETFs. ETFs allow you to own shares in a fund that holds physical silver, saving you from the hassle of storage and insurance.
Some common forms of silver investment include:
- Bullion bars and rounds: Sold based on weight and purity.
- Minted coins: Government-backed coins like American Silver Eagles that often carry added collectible value.
- Jewelry: Crafted pieces priced higher than bullion, but with the same purity.
- Mining stocks: Shares in silver mining companies, offering an indirect way to invest while reducing exposure to silver’s price fluctuations.
For trading purposes, silver bullion and coins are generally required to be at least 99.9% pure, while silver with lower purity is considered industrial or collectible. There are resources available that guide you on investing in precious metals, including IRAs.
Is it a good time to invest in silver?
The past year saw silver prices rise nearly 25%, reaching levels not seen in a decade.
Deciding whether now is a good time to invest really depends on your goals and possibly even your gut feeling. Precious metals can be useful in hedge against inflation, and there may be an uptick in industrial demand, particularly with green technology, that could push prices higher.
That said, it’s important to approach silver investment without expecting massive returns.
Current precious metals prices as of 6:45 a.m. ET today
| Precious metal | Price per ounce |
|---|---|
| Gold | $4,182.61 |
| Silver | $60.25 |
| Platinum | $1,680.50 |
| Palladium | $1,144.43 |
Gold continues to be viewed as the go-to safe haven in precious metals. Its larger market makes it more stable compared to silver, platinum, and palladium, which tend to exhibit similar price volatility due to their smaller markets.
The takeaway
Given the current economic climate, it might be wise to keep precious metals on your investment radar.
Silver’s gains over the past year have exceeded those of gold, and many analysts predict that it could continue to gain strength, potentially reaching new heights.
Also, silver’s lower price compared to gold makes it a more accessible option for investors looking to get into precious metals. Whether through physical silver, ETFs, or mining stocks, there are various avenues to help position yourself for potential future gains.
Frequently asked questions
What percentage of my portfolio should I allocate to silver?
Most financial advisors suggest limiting silver investments to about 10% to 15% of your portfolio, while keeping the total exposure to precious metals around 20%.
Can silver be held in an IRA?
Yes, you can hold IRA-eligible silver bars and coins (99.9% purity) with an IRS-approved custodian. However, junk silver (minted prior to 1965) isn’t eligible but still retains collectible value outside of retirement accounts.
What’s driving silver prices in 2026?
A combination of limited supply and increasing demand, both from industrial applications and investors, seems to have propelled silver’s price growth over the last year.
