Silver on Fire and crossed the $41.450-per-ounce mark for the first time since 2011, a big milestone. In just a few days, from wed 03 september 2025, silver prices jumped by over 5%. So, what’s behind this sharp rise? Let’s break it down in simple Indian English.
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- 1 Why Is Silver Price Going Up?
- 2 What’s Next for Silver?
- 3 FAQs About Silver Price Surge
- 4 1. Why has silver crossed $41.462 per ounce?
- 5 2. How is gold affecting silver prices?
- 6 3. Why is there less silver available?
- 7 4. Why are US investors not buying silver?
- 8 5. Is silver a good investment now?
- 9 6. How does India’s demand affect silver prices?
- 10 7. What happens if silver crosses $50?
- 11 8. Are there risks to investing in silver?
- 12 9. Where can I buy silver?
- 13 10. Will silver prices keep rising in 2026?
Why Is Silver Price Going Up?
- Following Gold’s Lead
Gold prices have hit a record high, crossing $3,500 and touching $3,570 on Wed 03, September 2025. Silver often moves in the same direction as gold. Last week, the US Federal Reserve Chairman, Jerome Powell, hinted at cutting interest rates in September during his speech in Jackson Hole. Lower interest rates are good for metals like silver and gold because they don’t pay interest like bank savings. This makes them more attractive to investors. - Safe Haven Demand
People are worried about the economy and markets. A US judge recently said many of President Trump’s tariffs (taxes on imports) were not legal, creating confusion. This, along with concerns about the US economy and the Federal Reserve’s independence, is pushing investors to buy safe assets like silver and gold. Also, September and October are usually tough months for stocks, so people are being extra cautious. - Tight Silver Supply
There’s not enough silver available in the market. Last year, a lot of silver was moved from London to the US due to tariff fears. Even though silver was later exempted from tariffs, the supply in London hasn’t fully recovered. In 2024, the demand for silver was higher than the supply for the fourth year in a row, with a shortage of 148.9 million ounces. Over four years, the total shortage is 678 million ounces—equal to 10 months of silver mining!
This shortage forces industries to buy existing silver stocks, pushing prices up. Industrial demand for silver hit a record high in 2024 for the fourth year running. - Low Silver Stocks
Silver stocks in London, COMEX (US), and Shanghai Futures Exchange are shrinking. In 2021, London had 1,180 million ounces of silver, but by last year, it dropped by 30%. These low stocks are helping keep silver prices high. - US Investors Not Joining Yet
While silver prices are rising, US investors haven’t jumped in fully. They’re selling silver to make profits instead of buying more. Silver coin and bar sales in the US are down by about 30% this year. But in Asia, especially India, demand for silver is strong. Europe is also seeing some recovery in silver demand.
What’s Next for Silver?
Experts are positive about silver’s future. Stefan Gleason, CEO of Money Metals, says $40 is a key level. If silver crosses $50, it could rise much higher. Metals Focus, a research firm, believes silver prices will stay strong because:
- London’s silver supply will likely remain low.
- Expected US interest rate cuts will make silver more attractive.
- Worries about the global economy, US debt, and the Federal Reserve will keep pushing investors toward silver and gold.
When US investors start buying silver again, prices could shoot up even more.
FAQs About Silver Price Surge
1. Why has silver crossed $41.462 per ounce?
Silver prices (Wed 03, Sep 2025) are up because of high gold prices, lower US interest rates, tight silver supply, and people buying safe assets like silver due to economic and market worries.
2. How is gold affecting silver prices?
Silver often follows gold’s price movements. When gold prices hit a record high above $3,578, silver also rose, crossing $40 for the first time since 2011.
3. Why is there less silver available?
Silver supply is tight because demand is higher than what’s mined or recycled. In 2024, there was a shortage of 148.9 million ounces. Also, silver stocks in London, COMEX, and Shanghai are shrinking.
4. Why are US investors not buying silver?
US investors are selling silver to make profits instead of buying more. Economic and global uncertainties are making them focus more on gold. Silver coin and bar sales in the US are down by 30%.
5. Is silver a good investment now?
Experts think silver prices could rise further, especially if US investors start buying. Lower interest rates, economic worries, and tight supply are likely to support higher prices into 2026.
6. How does India’s demand affect silver prices?
India has strong demand for silver, which helps keep prices high. Unlike the US, where demand is weak, Asian markets like India are boosting the global silver market.
7. What happens if silver crosses $50?
If silver breaks the $50 mark, experts like Stefan Gleason believe it could gain momentum and rise much higher, attracting more investors.
8. Are there risks to investing in silver?
Yes, silver prices can be volatile due to economic changes, market uncertainties, or shifts in investor interest. Always research before investing.
9. Where can I buy silver?
You can buy silver coins, bars, or jewelry from trusted jewelers, banks, or online platforms in India. Make sure to check purity and prices before buying.
10. Will silver prices keep rising in 2026?
Experts are optimistic due to expected US interest rate cuts, low silver supply, and economic concerns. However, prices can be affected by many factors, so stay updated.