The precious metal that is now outpacing gold
It’s often known as the medal for coming second, but silver seems to be running a race of its own right now.
Over the past 12 months, the precious metal has been one of the biggest movers in the commodity market, more than doubling in value and rising at a faster rate than gold.
While silver is often associated with jewelry due to its malleability and luster, the metal is also known as a good conductor of electricity. Silver contacts and switches are used in almost all electrical devices. Microwave ovens, dishwashers, televisions, phones, toys and computers all contain silver.
But recently the metal has been used in solar cells that help convert sunlight into electricity.
Perth Mint Institutions and Business Solutions General Manager John O’Donoghue said silver had risen significantly in the last 12 months, supported by increased investor demand and strong industrial consumption.
“From a price perspective, silver finished December 2024 at $46.50 per ounce (AUD) and 12 months later, in December 2025, it came in at more than $100 per ounce and is currently priced around $168 per ounce,” he said.
“It has been an extraordinary period for the precious metals market, with gold and silver prices breaking new records almost every day.
“Gold increased by more than 50 percent in Australian dollar terms by December 31, 2025, while silver increased by more than 130 percent. This momentum continued in 2026.”
O’Donoghue said the high price of silver was due to many factors affecting the recent rise in the price of gold.
“So global economic uncertainty and geopolitical instability continue to support safe-haven buying.
“This is coupled with strong industrial demand, given the use of silver in electric vehicles, photovoltaics and other technologies.
“We are also seeing elements of momentum-based or ‘FOMO’ trading in the market.
“When prices rise rapidly, some investors feel compelled to enter the market to avoid missing out on further gains, and additional demand could strengthen the upward move.”
In Western Australia, silver ranks very low on the list of major mining exports, lagging behind traditional resources such as iron ore, copper, natural gas and gold.
Quarterly silver production peaked in value terms in the three months ending December 2021, when the metal brought the state $46.43 million from 46.32 tonnes, according to the latest data available from the Department of Mining, Petroleum and Exploration.
This compares with last year’s December quarter, when just 27.89 tonnes of silver brought $45.35 million to the state.
Professor Jacques Eksteen, Head of Mining Metallurgy at the WA School of Mines, said silver was predominantly mined as a by-product, although it often had a stronger value than other metals.
“Silver is normally a byproduct of base metal mining and sometimes gold mines,” he said.
“It is rarely the dominant metal (in quantity) in a given mine, but it may be predominant in value.”
Eksteen added WA was not known for its large silver deposits and the precious metal was more widely available in Queensland.
“The most important silver mine in Australia is the Cannington silver-lead-zinc mine in Queensland and is owned by South32,” he said.
“Recovery of silver is not trivial due to the complex chemistry and reagent required to keep it stable in solution.
“It has a wide variety in terms of mineralization forms, but where it is associated with lead and zinc. It can be recovered fairly easily as a sulphide concentrate using flotation and then further processed in a refinery using predominantly high temperature processes.
While the majority of silver mined in Western Australia comes as a by-product from other base metal operations, Dr. ALex Walker said there are two sites in the state exploring the extraction of silver as a primary ore.
“Elizabeth Hill operated until 2000, when the silver price dropped below $5 per ounce,” he said.
“Gravity separation was used to concentrate the natural silver, which accommodates Bonanza grade silver.
“It and the surrounding tenement area are currently occupied by West Coast Silver, which is engaged in determining the extent of mineralization beyond historical studies. The company is collaborating with Curtin to characterize the silver mineralization.”
According to West Coast Silver, the Pilbara-based Elizabeth Hill operation has a proven silver production track record. Between 1998 and 2000 the mine produced 1.2 million ounces of silver from just 16,830 tonnes of ore, achieving a head grade of 2194 grams per tonne.
The other major silver producer is the Abra silver-lead mine, about 200 kilometers northwest of Meekatharra. Walker said it was also working with Curtin University.
“The Abra silver lead mine, currently owned and operated by Endurance Mining, has historically been heavily engaged in lead extraction,” he said.
“Endurance is turning to exploring the silver frontier in bearing in collaboration with Curtin University.”
O’Donoghue said the rise in the value of silver saw customers seizing the opportunity to convert their silver assets into cash and make a profit.
“Rising prices often encourage investors to rebalance their holdings, and this is evident from the activity we are seeing,” he said.
“The Perth Mint purchases silver bullion from customers. Unlike gold, we do not purchase silver jewellery.”
O’Donoghue said the enormous demand for precious metals, and silver bullion products in particular, has led to unprecedented logistical and production challenges for the Mint to meet the volume of orders it receives, which has meant it has had to limit the availability of some silver products.
“We know this is disappointing for our customers. We are working hard to accommodate this increase while maintaining the highest standards for precision and quality,” he said.
“Our inspection, packaging and shipping processes are highly manual. Each coin, bar and numismatic item is individually inspected and requires careful handling as items are placed in cases, tubes or boxes.
“We are increasing our staff to speed up these processes and thank our customers for their patience.”
