On October 13, 2025, the global silver market witnessed an event that hadn’t occurred in nearly half a century: the price of silver shattered its previous all-time high, closing at $50.13 per ounce. This remarkable surge, reported by Wall Street Journal, eclipsed the longstanding $48.70 peak set in January 1980, a record that had stood since the infamous Hunt brothers’ attempt to corner the silver market. While the inflation-adjusted value of silver would need to soar past $200 per ounce to truly surpass the 1980 apex, the nominal record alone is a testament to the extraordinary pressures and dynamics at play in today’s precious metals markets.
Silver’s rapid ascent—up 6.8% in a single trading session and a staggering 73% since the start of 2025—has outpaced even gold, which itself has risen 56% to surpass $4,000 per ounce. The Nasdaq Composite, by comparison, has managed a 17% gain. This isn’t just a story of numbers, though. The run-up in silver prices is a tale of global economic anxiety, shifting industrial demand, and a market grappling with both old ghosts and new realities.
According to VNExpress, the ripple effects of this surge have reached Vietnam’s domestic market as well. On October 14, the Saigon Jewelry Company (SJC) listed gold at nearly 147 million VND per tael, a jump of almost 3 million VND from the previous day. Silver, too, wasn’t left behind. Its price in Vietnam climbed by nearly 10% in just a week, with major retailers like Phu Quy and Sacombank-SBJ reporting new highs and even shortages. Customers queued outside SJC branches, hoping to secure precious metals as supply grew tight and online orders were snapped up within moments of opening.
But what’s driving this feverish demand for silver across continents? At its core, it’s a classic case of supply and demand colliding with modern-day uncertainties. Investors, wary of inflation, geopolitical instability, and sky-high stock valuations, have flocked to precious metals as safe havens. As Shree Kargutkar, Senior Portfolio Manager at Sprott Asset Management, explained to Wall Street Journal, “The amount of silver being mined and recycled is now less than what’s being consumed. This is a textbook supply-demand imbalance.”
The imbalance is being aggravated by a surge in industrial demand, particularly from the solar energy sector. Over the past decade, the amount of silver used in solar panel manufacturing has more than doubled. Citigroup analysts believe actual consumption may be even higher than industry estimates, especially given underreported installations in China. The bank recently raised its short-term silver price target to $55 per ounce, citing ongoing geopolitical concerns and the inflationary impact of tariffs as likely to keep investors pouring into precious metals.
It’s not just investors and solar panel makers fueling the demand. Electronics manufacturers require silver for its conductive properties, and jewelry buyers have increasingly shifted from gold to silver, especially as gold prices have become prohibitive. This multi-pronged demand has left inventories strained. In London, the world’s physical hub for precious metals trading, silver stocks have dwindled since early 2025. The reason? Dealers rushed to ship silver to the U.S., anticipating possible new taxes—echoing tariffs previously imposed on steel, aluminum, and copper under former President Trump. The U.S. Geological Survey has even proposed adding silver to the nation’s list of critical minerals, a move that could pave the way for further trade restrictions.
The result has been a rare and telling divergence between London and New York silver prices. Usually, these markets move in sync, but lately, London prices have soared above New York’s, reflecting acute supply fears in the UK. According to Robert Gottlieb, a former precious metals executive, “This is what I’d call a ‘broken’ market.” Hedge funds and banks have reportedly suffered losses from attempts to exploit price gaps between U.S. and UK inventories—a sign of just how volatile and unpredictable the market has become.
Meanwhile, silver-backed exchange-traded funds (ETFs) have continued to attract investment, further draining physical supplies. In recent sessions, borrowing rates for silver in London have spiked as traders scramble to settle positions. Some market watchers believe these high prices might soon prompt holders—from institutional vaults to family coin collections—to sell, potentially easing the shortage but also risking abrupt price corrections. Indeed, the market has already seen sharp sell-offs, like the 3.7% drop (equivalent to $1,806 per ounce) on October 9, the steepest daily decline since April, when silver tumbled amid tariff-related jitters.
Vietnam’s experience offers a microcosm of these global trends. With gold and silver prices soaring, local jewelers have struggled to keep up with demand. SJC and other major brands have at times limited sales or issued appointment slips to manage shortages. Even plain gold rings, traditionally less expensive than gold bars, have in some cases overtaken bar prices, as buyers scramble for any available form of precious metal. The gap between domestic and international gold prices has widened to nearly 14 million VND per tael, underscoring the dislocations caused by global market forces.
For many, the current silver rally evokes memories of the Hunt brothers’ saga in the late 1970s and early 1980s. Bunker, Herbert, and Lamar Hunt—sons of Texas oil magnate H.L. Hunt—hoarded silver worldwide in a bid to hedge against inflation and profit from rising prices. Using their stockpiles as collateral, they bought up futures contracts, driving silver from $11 to nearly $50 per ounce. But as more Americans sold household silverware and coins, and regulators stepped in, the bubble burst. The brothers faced civil charges for market manipulation, agreed to trading bans, and ultimately declared bankruptcy. Lamar Hunt, also known for founding the Kansas City Chiefs football team, paid millions to settle lawsuits stemming from the debacle. The episode even inspired the Eddie Murphy comedy “Trading Places.”
Today’s market is different in many respects, but the echoes of the past are hard to ignore. The forces propelling silver—industrial innovation, investor anxiety, and the specter of new regulations—are as potent as ever. As Citigroup analysts note, the smaller size of the silver market compared to gold means that even a modest influx of new buyers can have outsized effects, amplifying price swings and volatility.
With silver and gold both setting records, and investors from Wall Street to Ho Chi Minh City lining up to buy, the world is watching closely. Whether this rally marks the start of a new era for precious metals or the prelude to another dramatic correction remains to be seen. But for now, silver’s 45-year record is history—and the story is far from over.
