Silver prices nearly double in less than a year

KABUL (Pajhwok): The price of silver in global markets has more than doubled in less than one year and has also followed a sharp upward trend in Afghanistan. Economic experts attribute the rise to a reduction in interest rates by the US Federal Reserve, increased global demand, and the world’s growing shift towards green energy.

The price of silver has more than doubled compared to the beginning of the current year (2025) in global markets.

According to data from the TradingView website, the price of one ounce of silver in global markets stood at USD 29.6 in early January 2025 and has now increased to USD 63.1.

Similarly, information from the Investing website shows that the price of one ounce of silver in Afghanistan’s markets was 2,174 afghanis (USD 30.9) in early January 2025 and has now risen to 4,187 afghanis (USD 63.3).

Each ounce of silver (the troy ounce, which is the standard unit in global markets) is equivalent to 31.1035 grams.

Fawad Salehzada, a member of the Kabul Jewellers’ Association, told Pajhwok Afghan News that on Tuesday (16 December) the price of one gram of silver in Kabul markets stood at 130 afghanis.

Why is the price of silver increasing?

Salehzada said several factors were driving the rise in global silver prices. “Silver is now widely used in technology, and according to information available to us, China is purchasing hundreds of kilograms of silver daily from various countries,” he said.

He added that some countries have converted part of their foreign currency reserves into gold and silver, which has also contributed to the increase in global silver prices.

Meanwhile, economic analyst Qais Mohammadi told Pajhwok that one of the main reasons for the rise in silver prices was the imbalance between supply and demand.

“Demand for silver has increased, while production has declined relative to demand,” he said.

Mohammadi added: “The more the world moves towards green energy, the greater the demand for silver and gold will be, and as a result their prices will rise. This is one of the key contributing factors.”

Green energy refers to renewable and clean energy sources that produce very low or near-zero greenhouse gas emissions and environmental pollution and, unlike fossil fuels such as oil, gas and coal, do not cause long-term environmental damage.

Mohammadi further said that based on economic forecasts made in December 2025, the global economic crisis is expected to intensify in 2026. “For this reason, the US Federal Reserve has reduced interest rates to encourage borrowing. As people anticipate an economic downturn, they increasingly turn to investments in gold and silver, which has also pushed prices higher,” he said.

According to reports, the US Federal Reserve cut interest rates for the third time on 10 December this year. The decision was taken amid internal disagreements within the bank over further rate cuts in the coming months, creating uncertainty about the future economic outlook.

Meanwhile, Ahmad Shah, a money changer at Sarai Shahzada in Kabul, also pointed to rising silver prices in both global and Afghan markets.

He said that wars and insecurity in various parts of the world have increased demand for safe-haven assets such as gold and silver.

“As a result, prices of these precious metals have continued to rise in global markets, and most money changers have now shifted their business activities towards gold and silver,” he said.

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