Silver's price hits record high: What beginner investors should know about precious metals now

The surge in the price of silver may not be over quite yet. 

Case in point? The price of the precious metal hit a new record high this week, rising past $64 per troy ounce on Thursday, according to American Hartford Gold. That comes after the metal hit previous price records just in October, when it was priced around $50 for the same amount. But the price surge is even more remarkable compared to where it sat in December 2024, when it was listed for just $29.04 per ounce. Overall, in 2025, the price has grown from $28.92 on January 1 to $64 on December 11 – an increase of more than 121% just this year.

But this doesn't necessarily mean that investors, particularly those new to the precious metal space, should automatically run to get started with silver. As is the case with all investments, a measured and informed approach is the right one to take. And that means understanding some key elements about precious metals right now. Below, we'll detail three worth examining.

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What beginner investors should know about precious metals as silver's price surges

Precious metal investments can play a critical and cost-effective role in your larger portfolio, assuming you understand these three key points now:

They're (usually) not investments that can turn a quick profit

Precious metals like gold and silver aren't typically the type of investments you can turn a quick profit with. Instead, either individually or in combination with one another, they better serve as a portfolio diversification tool to offset volatility felt with stocks, bonds and other investments. They can also help hedge against the damaging impacts felt from inflation, as they often maintain and even increase in value during such periods. 

At the same time, now is not a typical time for either metal (gold has also surged in price in recent years). So, with a strategic and well-timed approach, investors may be able to buy and sell these metals relatively quickly and profitably. It's just not the traditional way to benefit from either.

Learn more about the smart ways to invest in precious metals here.

You may need to get creative in your approach

With gold priced comfortably over $4,000 per ounce now and silver up more than 100% year to date, the days of easily and affordably getting invested in either metal may be over, perhaps permanently. So you may need to get creative now. This could mean taking a dollar-cost averaging approach, in which you invest the same amount of money into the metals at regular intervals. 

As a result, you won't be able to secure full ounces right away, but it also means you won't overspend and overleverage yourself at the same time. Or you can look at fractional amounts, which allow you to buy in with amounts less than the conventional troy ounce, building up your investment over time. Overall, you may currently need to take a unique approach, but if the end result means you're comfortably invested without having to overspend or jeopardize your other investments, then it will be worth it. 

They should still be a limited portion of your portfolio

Thanks to the aforementioned reputation as a portfolio protector and hedge against inflation – and not a conventional income producer – gold and silver should still make up a limited portion of your portfolio, even now with the price rising. Experts recommend limiting precious metals to 10% of your portfolio, and if you invest in both gold and silver, that means 5% of each, not 10% of each metal. 

Don't lose sight of what these investments can and cannot do for you, especially if you have an extended investing timeline. Keeping them limited will allow you to better exploit other investments while still maintaining a baseline of security via the metals.

The bottom line

Silver's new record price may understandably entice investors unfamiliar with the precious metal landscape. But being prepared and informed is critical to boost the chances of precious metal success. By understanding the likelihood of profit-making with precious metals, knowing the cost-effective ways to get invested and being aware of the limits these metals should play in their wider portfolio, beginners can vastly improve their chances of success with the metal both now and over the long term.