Silver Price 2024: The White Metal's 12-Year High and What's Driving It

Silver is on fire this year. On October 21, the precious metal hit US$34.20 per ounce during intraday trading—marking its highest level in 12 years and representing a jaw-dropping 48 percent gain since January. But what’s fueling this explosive rally, and how does 2024 stack up against silver’s legendary price moves throughout history?

The 2024 Rally: From March Momentum to October Breakout

After stumbling out of the gate in early 2024, silver found its footing in March when expectations for Fed rate cuts sent prices surging. By March 20, the metal had already claimed its Q1 peak at US$25.62 per ounce. But the real fireworks came in May. On May 17, silver breached the US$30 milestone for the first time since 2013—a psychological barrier that traders had been watching closely. Three days later on May 20, it rocketed to US$32.33, cementing its status as the highest price in over a decade.

The summer pullback saw prices dip below US$27 in August, following copper and other industrial metals lower. Yet the fourth quarter turnaround proved dramatic. Safe-haven demand sparked by US election uncertainty, Middle East tensions, and expectations of further monetary easing pushed silver through US$30 once more in mid-September. The momentum carried through to late October, when the white metal achieved its 2024 zenith.

Historical Context: How High Can Silver Go?

To understand silver’s current trajectory, consider where it has been. The precious metal’s all-time peak remains US$49.95 per ounce, reached on January 17, 1980—though that record came under dubious circumstances. The Hunt brothers famously attempted to corner the silver market by accumulating both physical bullion and futures contracts. Their scheme spectacularly collapsed on March 27, 1980 (infamous as “Silver Thursday”), when they failed a margin call and prices crashed to US$10.80.

That extreme wasn’t revisited for over three decades. The next major milestone arrived in April 2011, when silver touched US$47.94 following a 30+ percent surge fueled by strong investment demand. After pulling back to the US$15-20 range through the mid-2010s, the metal staged a comeback during the 2020 COVID uncertainty, briefly testing US$30 before retreating.

October 2024’s US$34.20 represents meaningful progress, though it still trails the 1980 and 2011 peaks by a considerable margin. The question haunting market watchers: Can silver’s silver price 2024 momentum carry it higher?

Why Silver Is Rallying: The Supply-Demand Imbalance

Three factors are converging to support silver today. First, precious metals benefit from macro uncertainty—investors flee to safety when geopolitical risks mount or rate cut cycles begin. Second, industrial demand is surging. Solar panel deployment globally requires massive quantities of silver, and Metals Focus projects a 20 percent jump in solar-sector demand for 2024.

Here’s where it gets interesting: Global silver mine production is expected to decline 0.8 percent to 823.5 million ounces in 2024, according to the latest World Silver Survey. A four-month operational suspension at Newmont’s Peñasquito mine in Mexico due to labor strikes significantly impacted output, while lower ore grades and closures in Argentina, Australia, and Russia have pressured supply further. Meanwhile, substantial production declines from Peru and China are expected to more than offset expansion gains elsewhere.

The result? A projected supply deficit of 215.3 million ounces in 2024—the second-worst discrepancy in over 20 years. When you marry this shortage with surging industrial fabrication demand (projected to hit an all-time high) and safe-haven investment flows, you have a recipe for sustained upside pressure on silver’s price.

The Mechanics: How Silver Trades in Modern Markets

Silver transactions occur globally through multiple channels. Physical bullion—bars, coins, and rounds—trade on the spot market in dollars and cents per ounce, with London serving as the epicenter for physical trading. Paper futures, predominantly handled through NYMEX COMEX, allow traders to enter contracts for future delivery at fixed prices, often employing substantial leverage with minimal capital requirements.

Exchange-traded funds (ETFs) have democratized silver exposure, letting retail participants gain exposure via equity-like trading without storage hassles. Some track physical bullion holdings directly, others follow futures contracts, and still others mirror silver mining stocks or real-time spot prices.

The Elephant in the Room: Price Manipulation Concerns

Silver’s price stability remains shadowed by manipulation allegations. In 2015, investigations revealed that major institutions—including HSBC, UBS, Bank of Nova Scotia, and others—had rigged silver rates between 2007 and 2013. JPMorgan paid US$920 million in 2020 to settle manipulation probes across multiple markets. Most recently, a 2014 lawsuit against HSBC and Bank of Nova Scotia was dismissed in 2023, though the broader debate about market integrity persists.

The shift from the century-old London Silver Fix to the LBMA Silver Price (administered by ICE Benchmark Administration since 2014) aimed to improve transparency, though skeptics argue structural vulnerabilities remain.

Where Next for Silver?

Whether silver price 2024 momentum continues depends critically on the white metal maintaining its perch above the US$30 level. Some analysts believe it can challenge—or even exceed—the 2011 peak of US$47.94. Others urge caution, pointing to the metal’s notorious volatility stemming from its dual identity as both an investment asset and an industrial commodity.

Supply and demand mechanics will ultimately determine whether silver reaches new heights. With production constrained and demand from solar energy and other industrial applications accelerating, the conditions appear favorable. Yet geopolitical or monetary policy shifts could rapidly reshape the outlook. For now, investors watching silver’s 2024 surge know one thing for certain: The white metal’s latest chapter remains unwritten.