Silver prices are making headlines! As of September 24, 2025, silver is trading at $44.07 per ounce, according to recent reports. While this represents a slight dip of 0.76% from yesterday, it signifies a remarkable surge of over 38% in the past year. But what's driving this volatility and is silver a good investment right now?
Silver's Performance: A Historical Perspective
Historically, silver hasn't been a high-growth investment compared to options like stocks. In fact, since 1921, silver has underperformed the S&P 500 by a significant margin. This means that an equivalent investment in stocks would have yielded considerably higher returns.
Silver: The Inflation Hedge
So, why invest in silver? Silver is often valued for its stability and its ability to hedge against inflation. It's considered a “store of value,” meaning it tends to maintain its purchasing power during periods of rising inflation. This makes it an attractive option for investors looking to protect their wealth against economic uncertainty.
Silver vs. Gold: Which is Better?
While the original article does not compare the two, a separate Forbes article shows that Gold continues to outshine Silver. Silver hit a 14-year high mark this week, amid persistent geopolitical and economic uncertainties, and mixed signals from the U.S. Federal Reserve.
Factors Influencing Silver Prices
Several factors are contributing to the current silver price movement. According to recent reports, investors are closely watching key US jobs and inflation data, which will influence the Federal Reserve’s policy outlook. Recent Fed commentary has created uncertainty about future rate cuts.
Furthermore, strong industrial demand is supporting silver prices. Constrained supply and resilient demand from sectors like solar, electric vehicles, and electronics are underpinning the metal's value.
The Bottom Line: Should You Invest?
The decision to invest in silver depends on your individual investment goals and risk tolerance. While it may not offer the same high-growth potential as other assets, silver can serve as a valuable tool for hedging against inflation and diversifying your portfolio. Keep a close eye on market trends and consult with a financial advisor before making any investment decisions.