The price of silver has risen massively over the past year, seeing a value increase of almost 160% since the start of 2025 and a growth of over 30% in the past month alone.
This rise is partly due to the growing tensions between the USA and Venezuela, driven by strong demand from investors seeking these ‘safe-haven’ assets.
On Wednesday, the 7th of January, silver prices saw a slight drop below $80/oz, breaking a three-day surge in prices, highlighting the volatility of the precious metals market.
If you are willing to make a long-term investment, silver is a great starting point. Due to the substantial growth seen in the silver market over the past year, demand is likely to continue. However, it’s worth noting that the silver market is more volatile than gold, so investors should anticipate price fluctuations and approach with patience.
Similar to gold, investing in silver bars and coins can serve as an inflation hedge as well as a portfolio diversifier. The main difference between the two is that silver comes with higher volatility than gold, as there is a much higher industrial demand, a smaller market size, and in the UK is subject to 20% VAT.”
Factors like economic uncertainty and industrial demand cause silver prices to fluctuate constantly; however, silver is much more affordable than gold, making it within reach for smaller investors. The lower entry price point makes silver an excellent first step for anyone looking to dip their toe into precious metals. You can begin enjoying the potential benefits of holding a tangible asset that acts as an inflation hedge and portfolio diversifier, while gaining valuable hands-on experience in buying, storing, and managing physical bullion without the large commitment first.
Leave a Comment