Silver’s Rollercoaster: Highs, Lows, and What Lies Ahead
Silver prices recently reached their highest levels in nearly 12 years. What does the future hold for this precious metal?
Much attention has been drawn to the value of gold recently, but the spot price of silver has been rising as well. In October 2024, silver hit its highest value in almost 12 years, then backed off modestly. The lower prices now being seen are due to the Federal Reserve Bank's monetary policies, the strength of the U.S. dollar on world markets, and rising yields on Treasury bonds.
Everyone’s got an opinion about whether the value of silver will rise or fall during 2025. Kitco projected in late December that “the metal [will] average $36 per ounce in the final months of next year [2025], making it a commodity outperformer.” I’m sure I can find opinions that view silver performing in the opposite direction.
Coin collectors' interests are focused on the many circulation strike coins produced through 1964, Silver American Eagles, and silver composition coins in the many non-circulating legal tender sets hawked to them by the U.S. Mint. One important and usually reliable barometer is Morgan silver dollars. Common date coins in lower conditions continue to be priced, keeping their intrinsic value in mind. The better condition and better date coins follow the beat of a different drummer.
Recently, that drummer has been beating the drum just slightly softer compared to the previous six months. This is not a correction, but this market has some softness. The best dates and examples that can be described as condition rarities continue to hold their own. What does this mean for the coin market? Overall, I would term it business as usual. This market appears to be moving horizontally rather than vertically. Collector coins continue to be in strong hands.
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