All that glitters this year wasn’t just gold; Â it was also silver.
Silver prices surged to record highs in December, climbing to roughly $67 per troy ounce and briefly touching about $67.45 on Dec. 19. It caps one of the strongest rallies in the metal’s modern history.
Silver began the year near $30 an ounce, meaning prices more than doubled in 2025, a gain of roughly 120 to 130% that sharply outpaced gold’s already strong rise of about 60%. Analysts point to a rare convergence of forces driving the move, including booming industrial demand, persistent supply constraints, heavy investor inflows, and shifting policy signals.
Industrial demand has been a central pillar of the rally. Silver’s unrivaled electrical conductivity makes it essential for solar panels, electric vehicles, advanced electronics, and the rapidly expanding data-center and artificial intelligence infrastructure. At the same time, mine supply has struggled to keep pace, with modest production growth and repeated annual market deficits tightening inventories in major global trading hubs.
Investment demand has increased as falling interest rates and expectations of further Federal Reserve cuts pushed investors toward precious metals. Additionally, silver’s addition to the US critical minerals list added further upward pressure late in the year.
Those record prices carry particular weight in Alaska, the leading silver-producing state in the nation. Alaska’s two major silver-producing mines, Greens Creek Mine and Red Dog Mine, together produce more than 16 million ounces of silver annually, representing an outsized share of total US output.
With spot prices now near $67 an ounce, the revenue implications for the state’s mining sector are coming into focus.
Greens Creek, operated by Hecla Mining near Juneau, is one of the world’s largest primary silver mines, with zinc, lead, and gold produced as byproducts. Production guidance for 2025 stands at roughly 8.4 million to 8.8 million ounces. The original forecast was 8.1 million to 8.8 million ounces. The proven and probable reserves exceed 100 million ounces. The mine’s cost structure amplifies the effect of higher prices: All-in sustaining costs are projected to range from slightly negative to about 50 cents per ounce. Earlier in the year, realized prices were closer to the mid-$30s, meaning the move to record highs has expanded margins and cash flow.
At Red Dog, operated by Teck Resources, silver plays a different role. The mine is primarily a zinc and lead operation, among the largest zinc producers in the world, with silver produced as a byproduct. While silver prices are not the main driver of output decisions there, higher prices enhance byproduct credits that reduce overall production costs and improve margins. Teck’s 2025 guidance assumed a silver price closer to $30 an ounce, leaving substantial upside at current levels, even as global trade disputes and tariff-related complications have added friction to concentrate exports.
The silver rally strengthens Alaska’s broader economy. In spite of years of environmental lawfare, mining remains a cornerstone industry for the state, generating billions of dollars in annual value, supporting thousands of high-paying jobs, and anchoring communities in remote regions where economic alternatives are limited and living costs are high. Higher silver prices translate into increased state royalties, stronger local payrolls, and more activity for transportation, engineering, and service providers tied to the mining sector.
Elevated prices are also reshaping the outlook for exploration and development. With global supply shortages persisting, interest is growing in expanding existing operations and advancing new silver prospects across Alaska, including projects that were marginal at lower prices. That renewed investment interest positions the state to potentially increase output in coming years if favorable conditions continue.
