Editor’s Note
This article examines the record-breaking surge in silver prices, which reached an unprecedented high in October 2025. It explores the factors driving this rally, including industrial demand, investment trends, and market dynamics, while also reflecting on historical precedents.
On Monday, October 13, 2025, the price of silver settled at $51.95 per ounce on the London market. This marks the highest level ever recorded in the history of the London Bullion Market Association, the benchmark for precious metals. The previous record dated back to January 18, 1980, marking the peak of the Hunt brothers’ manipulation of the silver market, an event that culminated in the resounding crash of “Silver Thursday” in March 1980.
In the late 1970s, inflation had become uncontrollable. Two Texas billionaires, the Hunt brothers, who built their fortune in the oil sector, had then massively purchased physical silver and futures contracts, representing about half of the world’s annual production. This colossal accumulation aimed to protect against rising prices and resulted in a surge in the price of silver per ounce.
Following intervention by regulators to curb speculation, prices collapsed, falling from $50 to $11. The two brothers were ultimately ruined and found guilty of market manipulation.
This trend is part of a much more liquid and better-regulated market, where silver and gold often move in tandem due to similar financial logics.
The silver market relies on the hundreds of millions of ounces of silver stored in London vaults to support its liquidity. These stocks have been regularly depleted in recent years. First, due to persistent deficits because mining production has failed to keep up with investor demand. And secondly, for industrial reasons such as solar panels or electronics, which are very silver-intensive.
Consequently, silver stocks in London have decreased by one-third since mid-2021. However, a large portion of this stock is held by exchange-traded funds. The remaining float of metal available to supply the London market – primarily held by large banks – has fallen to just 200 million ounces, a 75% drop from the peak of over 850 million ounces reached in mid-2019, according to Bloomberg calculations.
Finally, silver acts as a safe haven, offering investors a means to protect themselves against geopolitical instability and financial turbulence. Sources of concern abound: trade tensions between Washington and Beijing, Donald Trump’s questioning of the Fed’s independence, the war in Ukraine, not to mention the increase in global debt. All these factors are pushing investors to hedge their portfolios with precious metals.
It should also not be forgotten that stock markets are overheating, with indices reaching historic highs. This euphoria is fueled by the rise of artificial intelligence, whose promised returns on investment, however, are slow to materialize. Faced with this widespread uncertainty, investors are increasingly turning to tangible assets, such as precious metals.