Silver trades near $87 an ounce as demand drives rally

Silver’s surge to about $87 an ounce is forcing a hard reality check for anyone treating the metal as a simple bargain. Kitco’s live chart showed silver at $86.81 per troy ounce on May 12, with an ask of $87.06, while other real-time trackers put it between $86.46 and $87.15 on May 13. That kind of spread is normal in a fast-moving market, but the bigger story is the scale of the move: silver has gone from a 2024 average bullion price of $27.70 to levels more than three times higher.

The rally has been fueled by a mix of safe-haven demand, industrial buying and supply concerns. Silver is not just a precious metal; it is also a working commodity used in mirrors, electrical and electronic products, and photography, which the U.S. Geological Survey says remains the largest single end use of silver. That dual identity helps explain why prices can jump when investors want protection and when manufacturers need feedstock at the same time.

The supply picture has not offered much relief. The U.S. Geological Survey estimated world silver mine production fell to 25,000 metric tons in 2024 from 25,500 metric tons in 2023. In the United States, mines produced about 1,100 tons of silver last year, with an estimated value of $960 million. Even with that backdrop, the U.S. Geological Survey put the average silver price in 2024 at just $27.70 per troy ounce, 18% higher than in 2023 but still nowhere near today’s market.

For investors, the temptation to chase the move is obvious, but so are the risks. Trading Economics said silver reached an all-time high of $121.64 an ounce in January 2026, while nearby Comex silver futures have a far older nominal record of $50.36 from January 1980. J.P. Morgan Global Research still sees silver averaging $81 an ounce in 2026, a reminder that even bullish forecasts can sit below spot prices when momentum runs hot. CME Group says silver futures and options are widely used for risk management because the market can swing with mine production, industrial demand and broader global conditions. At these levels, silver is attracting hedgers, industrial users and momentum traders alike, but for long-term holders it remains most useful as a hedge, not a chase.