Silver Price History
Silver's price history is a story of long quiet stretches broken by violent spikes. It was money in the United States for most of the country's history, lost that role in stages between 1873 and 1970, then became the center of the most famous attempted corner in commodity history when the Hunt brothers helped drive it to just under $49.50 an ounce in January 1980. Silver approached that level again in 2011, and both peaks were followed by steep declines.
Silver as Money: 1792 to 1873
The Coinage Act of 1792 defined the U.S. dollar in both silver and gold, and silver dollars and fractional coins circulated widely. Because the legal ratio between the metals did not always match market prices, silver coins sometimes vanished from circulation when their metal was worth more than face value. The Coinage Act of 1873 ended the free coinage of silver dollars, a decision silver-mining interests later called "the Crime of '73."
The Silver Politics Era: 1873 to 1900
Silver became a major political issue. The Bland–Allison Act of 1878 and the Sherman Silver Purchase Act of 1890 required the Treasury to buy silver, and William Jennings Bryan's 1896 "Cross of Gold" speech made free silver the centerpiece of a presidential campaign. The Gold Standard Act of 1900 settled the question in gold's favor. Our history of the gold standard covers the gold side of this debate.
Silver Leaves the Coinage: 1965 to 1970
By the early 1960s, the market value of silver was approaching the face value of U.S. coins. The Coinage Act of 1965 removed silver from dimes and quarters and cut the half dollar's silver content to 40%; silver was dropped from circulating half dollars after 1970. The Treasury stopped redeeming silver certificates for silver in 1968. Pre-1965 coins remain popular today as junk silver.
The Hunt Brothers and 1980
In the late 1970s, Texas oil heirs Nelson Bunker Hunt and William Herbert Hunt, along with associates, built very large positions in physical silver and silver futures. Combined with high inflation and geopolitical tension, their buying helped push silver from single digits in early 1979 to a peak just under $49.50 an ounce in January 1980.
The rally ended when exchanges changed the rules. In January 1980, COMEX imposed position limits and then restricted trading to liquidation only, cutting off new leveraged buying. Prices fell rapidly. On March 27, 1980, later known as "Silver Thursday," the Hunts could not meet a margin call, and silver dropped to about a fifth of its January peak. The brothers later faced civil lawsuits and regulatory action over the episode. The Commodity Futures Trading Commission, which oversees U.S. futures markets, describes market manipulation risks and fraud warnings on its Learn and Protect pages.
The Long Lull: 1980s and 1990s
With inflation falling and real interest rates high, silver spent most of the next two decades at a small fraction of its 1980 peak, dipping below $4 an ounce in the early 1990s. A notable event came in early 1998, when Berkshire Hathaway disclosed it had bought roughly 130 million ounces of silver, though the purchase did not change the broader trend for long.
The 2000s Rise and the 2011 Spike
Silver rose through the 2000s alongside gold, helped by a weaker dollar, the launch of silver-backed exchange-traded funds, and rising industrial demand. After falling sharply during the 2008 financial crisis, it surged to around $48 in late April 2011, near its 1980 nominal high. Within days it dropped sharply after CME Group raised margin requirements several times, and it continued declining for several years, falling below $14 by late 2015.
The 2020s: Volatility Returns
Silver dropped below $12 in March 2020, when markets scrambled for cash early in the pandemic, then more than doubled within months. In early 2021, a social-media-driven buying campaign briefly lifted futures prices and strained supplies of physical coins and bars, pushing premiums higher. Since then, the Silver Institute has reported strong industrial demand, particularly from solar panel manufacturing, as covered in silver's industrial demand.
What the History Suggests
- Silver is volatile. Its largest gains and losses have been far larger than gold's.
- Leverage and rule changes matter. Both the 1980 and 2011 peaks ended soon after exchange margin or trading rules tightened.
- Real prices tell a different story. Adjusted with the BLS CPI Inflation Calculator, the 1980 peak is several times higher in today's dollars than its nominal figure.
- History is not a forecast. Past spikes and declines do not indicate what silver may do next.
Comparing silver with gold over time is easier with the gold-to-silver ratio, and our gold price history covers the same eras for gold. If you are considering buying silver, our guide to silver coins available through Goldco describes one precious metals company's offerings. A licensed financial professional can help you weigh silver's volatility against your goals.
Frequently Asked Questions
What was silver's highest price in 1980?
Silver peaked just under $49.50 per ounce in January 1980 before falling sharply over the following weeks.
What happened on Silver Thursday?
On March 27, 1980, the Hunt brothers failed to meet a margin call, which triggered heavy selling and fears of broader financial fallout. Silver fell to a fraction of its January high.
When did U.S. coins stop containing silver?
Dimes and quarters dropped silver under the Coinage Act of 1965. Half dollars contained 40% silver through 1970.
Why is silver more volatile than gold?
Silver's market is much smaller by value, and a large share of its demand is industrial, so changes in buying or economic conditions can move its price more.