HOUSTON, Texas – Gold and silver prices have surged to historic highs over the past 12 months, drawing crowds of buyers and sellers to precious metal dealers across Houston.
Gold soared to more than $5,600 an ounce in January before settling back to around $5,000 an ounce. Just a year ago, it was trading near $2,300, nearly a 100% increase.
Silver’s rise has been even more dramatic.
A year ago, silver was selling for about $30. Today, it has climbed to roughly $120 an ounce, a 300% jump.
“At 40 years of our company, we have not seen anything like this before,” said Matthew Duncan, co-owner of U.S. Coins and Jewelry in Houston.
On a busy morning, Duncan carried two large bags of silver onto his showroom floor, ripping them open as customers browsed nearby.
The surge in prices has meant a surge in business. Duncan says sales at his store are up about 50% in recent months, with steady traffic from collectors, investors and everyday customers looking to cash in.
“What we’re seeing with pricing is that you have very heavy buying,” Duncan said. “Gold and silver have always done really well in times of uncertainty, and we have a lot of geopolitical uncertainty in the world right now.”
Why Are Gold and Silver Rising?
Experts say precious metals often climb during periods of economic or global instability. Investors tend to view gold and silver as “safe haven” assets when markets feel volatile.
Duncan says that demand, both from large-scale investors and individuals, is helping fuel the surge.
With silver up 300% over the past year, some investors believe it may still have room to grow.
“Silver has been outperforming in the last year,” Duncan said. “It’s cheaper per ounce, so it’s a better entry point.”
One customer, Roger Hummel, was selling gold jewelry to buy more silver.
“I think silver will quadruple or hit five times the price it is now,” Hummel said. “For gold to go up five times, it would have to hit $25,000 an ounce, and I don’t think that will happen.”
Still, financial experts caution that buying gold or silver should be a decision made carefully and ideally with guidance from a financial planner.
During a demonstration, Duncan showed off an 88-ounce gold bar recovered from the SS Central America shipwreck.
At roughly $5,200 an ounce, that bar is worth approximately $457,600, and it fits in one hand.
“That’s what this bar is worth,” Duncan said. “In solid gold.”