Silver Price Plunges to 50% of Record High
Silver's price has plummeted since its record high of about $121 in late January 2026, falling to around $61 an ounce on October 1st. This volatility is characteristic of silver, a metal that responds to both investor fear and the global economy.
The gold-silver ratio, which measures how many ounces of silver it takes to buy one ounce of gold, currently stands at around 66.6 to 66.8, below its 20-year average of about 71. Analysts interpret this as a sign that silver may be relatively cheap, but some, like HSBC's James Steel, expect the ratio to widen again, which would let silver ease even if gold rallies.
One key factor driving silver's price is interest rates and bond yields; higher rates hurt silver since it pays no interest. However, with October Fed rate-hike odds dropping to about 38% after softer-than-expected US inflation data, silver has steadied.