Silver tops $80 for first time, then stages dramatic reversal overnight
A selection of one-kilogram silver bars at the Conclude Zrt bullion dealer on Monday, February 17, 2025 in Budapest, Hungary.
Akos Styles | Bloomberg | Getty Images
One of the best trades of the year saw a massive turnaround overnight.
Silver It fell 7 percent on Monday after hitting $80 an ounce in overnight trading for the first time in its history. The precious metal is still up more than 155% year to date. It started trading at just over $20 an ounce by 2025.
Silver futures were last trading around $71.91 per ounce.
March silver futures year-to-date
This has helped the precious metal outperform even gold this year. February gold futures, which recently broke above $4,550 for the first time this month, are up more than 70% this year.
Gold futures were last down 3.1%.
There are many reasons for the big gains. Along with gold, silver is seen as a safe haven for investors wary of rising geopolitical tensions and other risks such as the rising US budget deficit. The two metals are also seen as stores of value; This means they can act as a hedge against a weakening US dollar due to inflation or economic uncertainty. Moreover, the weakening of the US dollar makes assets cheaper for other countries.
Silver also benefited from strong industrial demand for electronics such as solar panels, data centers and electric vehicles.
