MW The price of silver is on track for a historic breakout. Why it's taken 45 years to get here.

By Myra P. Saefong

Rally for the white metal follows gold's moves to fresh record highs

Silver futures marked a record-high settlement on Oct. 8, 2025.

On the heels of a fast and furious climb this year, silver is within sight of $50 an ounce - a level investors are eager to celebrate because it's taken the white metal 45 years to get here.

Comex silver futures (SI00) (SIZ25) settled at $48.994 an ounce on Wednesday, a record high based on the most-active contracts, according to Dow Jones Market Data.

The metal's rally is "exciting," Peter Krauth, author of "The Great Silver Bull" told MarketWatch. "It took 45 years for silver to take out its all-time high."

The precious metal has yet to beat its intraday all-time high of $50.36, which was set on Jan. 18, 1980. On Thursday, it traded as high as $49.965.

Read: Don't let gold's record run distract you from silver's 'explosive potential' right now

Until now, silver was the only metal that was below its 1980 high, said Krauth, who is also editor of investment newsletter Silver Stock Investor.

A break above $50 in silver would be 'one of the biggest technical breakouts in modern history because of the length of time it has taken.' Peter Krauth, Silver Stock Investor

A break above $50 would be "one of the biggest technical breakouts in modern history because of the length of time it has taken," he said. That level is a "huge psychological milestone that's being watched by many market participants."

The move for silver is no surprise, given the rally in sister metal gold.

The yellow metal (GC00) (GCZ25) has gained more than 50% so far this year, and settled at a record-high of $4,070.50 an ounce on Wednesday. It first climbed above its inflation-adjusted closing high of $3,472.96 from January 1980 back in August of this year.

Silver, on the other hand, trades far below its inflation-adjusted record intraday high of $209.71 from Jan. 17, 1980.

"Silver has a tradition of following gold prices higher in the first stages, lagging behind then playing catch-up and overtaking gold's rise," then "rising faster and more spectacularly," said Peter Spina, founder and president of investor websites GoldSeek.com and SilverSeek.com. "We have entered this stage."

Read: Why record-high gold prices aren't scaring away first-time investors

Silver futures have already gained more than 60% so far this year.

Its "eye-catching rally" continues to gain momentum, with a "raft of powerful forces" converging to lift prices to record highs, said Nick Cawley, contributing analyst for Solomon Global. "Lower U.S. yields, surging industrial demand, constrained physical supply, and robust investor buying are driving prices into uncharted territory."

For 2025, global silver supply is forecast to come up short of global demand for a fifth year in a row, according to The Silver Institute.

These fundamental drivers show no signs of weakening, Cawley told MarketWatch, and the persistent demand-supply imbalance, combined with strong investor and industrial appetite "positions silver for sustained gains in the coming quarters."

He said that while silver futures' relative strength index $(RSI)$, a widely followed underlying momentum indicator, indicates that the metal currently trades in "extreme overbought territory," the readings remain below the elevated levels witnessed during the 1980 and 2011 spikes.

That "suggests additional upside potential exists" for silver, said Cawley.

Silver futures have reached an extreme overbought condition, but they're not yet at the peak levels seen in 1980 and 2011.

Silver is poised to experience significant volatility in the weeks and months ahead as it "enters a phase of price discovery in this unprecedented range," he said. This volatility presents "both challenges and opportunities for market participants."

He warned that sharp price swings may test investor resolve and trigger profit-taking, which could shake out shorter-term holders.

For investors with longer time horizons, however, these volatile periods often create attractive entry points, said Cawley. "Those capable of looking past short-term market noise may find compelling opportunities to establish or add to positions during temporary pullbacks."

"The key, as always for investors, lies in maintaining discipline and focusing on the underlying structural factors behind the move," he said.

Tomi Kilgore contributed to this report.

-Myra P. Saefong

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(END) Dow Jones Newswires

October 10, 2025 15:07 ET (19:07 GMT)

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