From Jewelry Boxes to Safes: The Silver Craze Turns Americans into "Silver Hunters"

Silver prices have soared 27% this year to a more than decade-high, driven by dual demand from investors and industrial buyers, bringing this precious metal, long overshadowed by gold, back into market focus.

Unlike gold, which is primarily used for wealth storage, 80% of silver demand comes from manufacturing, with strong demand from solar panel manufacturers providing additional support for prices. This month, silver prices have risen 12% so far. As of the time of writing, spot silver reached $35.94.

The price surge has sparked a "silver rush" across the United States. Investors are flocking to coin shops, metal dealers, and jewelry stores to cash in their silver coins, silverware, and silver bars, with some even rummaging through coin jars for silver coins minted before 1965.

Michael Widmer, head of metals research at Bank of America, stated that silver consumption in cutlery and electronics remains stable, and demand from solar panel manufacturers continues to grow. However, analysts warn that if prices become too high, manufacturers may turn to cheaper metal alternatives.

Industrial Demand as Price Engine

Unlike gold, which is mainly used for wealth storage and jewelry manufacturing, about 80% of silver demand comes from manufacturing. Analysts previously anticipated that Trump's trade war and adjustments to renewable energy incentive policies would impact silver demand.

This prediction seemed accurate when Trump launched a tariff offensive in April. Silver prices fell alongside stocks, oil, and other assets, leading investors to buy gold in large quantities. However, prices rebounded strongly this month, prompting more sellers to enter the market.

Michael Widmer of Bank of America noted that silver consumption in cutlery and electronics remains stable, with continued growth in demand from solar panel manufacturers. However, Greg Shearer, head of metals research at JP Morgan, warned that the solar industry in some countries may pre-purchase ahead of trade restrictions and changes in U.S. energy policy, facing a risk of demand decline in the second half of the year.

Investors Bet on Continued Price Increases

The iShares Silver Trust exchange-traded fund, favored by individual investors, has added nearly 11 million ounces of silver this year to meet demand. Some investors choose to hold physical silver directly.

Andrei Hnedchyk, owner of Honest Coin Shop in Union City, New Jersey, reported a 20% increase in foot traffic, mainly from "silver hoarders"—investors accumulating precious metals to hedge against economic uncertainty.

Russ Bega, COO of Chicago coin dealer Harlan J. Berk, stated that many customers regularly purchase small amounts of silver, despite high prices, out of concern for missing this price surge. He sold two 1,000-ounce silver bars last month and recently sold another 1,500 ounces to a different customer. The company's monthly silver bar procurement has more than doubled

The "Silver Rush" Sweeps Across America

Soaring prices make searching for old silver coins worthwhile. The melt value of a 25-cent coin minted before 1965 exceeds $6.50, far above its face value. Florida Governor Ron DeSantis recently signed a bill allowing certain gold and silver coins to be used as legal tender alongside traditional currency.

Bega revealed that some sellers who purchased silver decades ago at $10 per ounce are clearing out safe deposit boxes at a nearby Chase Bank that is about to close. Another client is a demolition worker who found old silver coins worth over $20,000 in the walls of a house.

Daniel Herzner, who operates a heritage jewelry business in White Plains, New York, stated that clients frequently call hoping to sell inherited or no longer needed jewelry and silverware. "They would rather cash it in," he said.

Although prices may continue to rise this year, analysts believe it will be difficult to break the record of $48.70 per ounce set in 1980. At that time, the Hunt brothers attempted to control the silver market through borrowing, causing prices to skyrocket from around $11 before crashing. Considering inflation, the 1980 record is equivalent to over $200 today