Global Silver Prices

The price of silver has risen to an unprecedented high. A year ago, silver was around £25 per ounce. This January it peaked at around £88 per ounce. As you can imagine, this is having a serious impact on anyone who uses silver, in particular small businesses. The price has dropped to around the £60 mark over the last couple of weeks, but it is still ridiculously high & there have been some wild fluctuations.

There are several reasons for these record price increases. Below is a simplified explanation of events that, occurring simultaneously, have created the perfect storm in the silver market.

 Firstly, silver frequently comes from mines where silver is not the main product that is being extracted. It is often a by-product of mines that are extracting gold, copper or lead. Which means it is not easy to increase the mining of silver.

More than 50% of silver is now consumed by industry & that is constantly rising. Industry now sees silver as a critical component due to its ability to conduct electricity better than copper or gold. It is used in solar panels & electric vehicles. High-end electronics & AI centres are also silver intensive. This has led to manufacturers hoarding supplies. Fearing tariffs, many US companies have been stockpiling silver leading to shortages elsewhere.

Also, global uncertainties & lower interest rates almost always result in investors moving their money into precious metals. Like gold, silver is seen as a safe investment, but the appeal is stronger now due to industrial needs & the expectation that the price will continue to rise. People buying silver as an investment only causes more shortages.

Fortunately, I purchased a batch of silver last year but I am coming to the end of those stocks. While the pieces that are currently on the website won’t increase in price, there will be some noticeable differences as I make jewellery using silver at the new, higher, price & you may see very similar items at vastly differing prices. I think it is fairer to do this than put a blanket increase on everything & blame the price of silver.

Thank you for reading.