Silver finished the year up 94% in AUD. Three things drove it

Key Takeaways 

• AUD silver rose 94% over the year to March 2026, from $54.55 to $105.84 per ounce. The largest single-year move for silver in our 26-year Australian dataset. 

• AUD silver hit multi-decade highs in nominal terms through the period and is trading above $104 per ounce as of today's open. The global silver market is also at its highest levels in over a decade. 

• Industrial demand (solar PV, electronics, EV components) plus multiple consecutive years of structural supply deficits set the floor. Investment demand pushed the top. 

• The gold-to-silver ratio has compressed from around 92 a year ago to roughly 59 today. That puts the ratio closer to its long-run average than the extreme reading it held at the start of the period. 

The numbers 

Last year was unusual for silver. In AUD terms, the metal moved from around $54.55 per ounce at the end of March 2025 to roughly $105.84 by the end of March 2026. That is a 94% move over twelve months. 

For context, that is the largest single-year move for silver in our 26-year dataset of Australian asset class returns. The previous high water mark was 2011, around the post-GFC silver squeeze, which delivered 86%. 

The move has been broad-based across major currencies, not just an AUD story. Silver globally has hit its highest levels in over a decade, and the AUD price has followed, supported by both the underlying spot move and the exchange rate. 

This happened with relatively little fanfare in the financial press. Gold's record run got the headlines. Silver did the bigger move. 

What drove it 

Three things, broadly. 

Industrial demand. Silver is a critical input for solar photovoltaic cells, electronics, electric vehicles, and a growing list of clean energy applications. The Silver Institute has flagged multiple consecutive years of structural supply deficits as industrial demand has outpaced mine supply growth. 

Investment demand. Bar and coin demand globally was up sharply through the period, and silver ETF holdings rebuilt off the multi-year lows that followed the 2022-2023 pullback. Retail buying through Australian and global bullion dealers has been consistently strong. 

Relative valuation. Coming into March 2025, the gold-to-silver ratio (the price of an ounce of gold divided by the price of an ounce of silver) was sitting near 92, well above its long-run range of roughly 50 to 80. That elevated reading suggested silver was relatively cheap to gold. Over the year the ratio compressed to around 64 by end of March, and sits closer to 59 today. The thesis worked. 

Where silver sits now 

AUD silver above $100 per ounce in May 2026 is a real number, but it isn't quite unprecedented in real terms. The 1980 peak (Hunt brothers era) sits well above current levels once you adjust for inflation, somewhere around $180 per ounce in today's AUD. The brief 2011 high translates to roughly $65 in today's dollars, which is meaningfully below where we sit now. 

That cuts both ways. The "we're at all-time highs, the move is over" framing doesn't quite apply, because the 1980 inflation-adjusted high is well above where we sit. But the comparison to 2011, the last serious silver run, says we are already in fresh real-terms territory above that prior peak. The "silver is cheap" framing has less weight now than it did at the start of 2025. 

The gold-silver ratio at around 59 is closer to its long-run average than the extreme reading that opened the year. The relative-value angle that drove the silver outperformance over the last twelve months is therefore less stretched today than it was at the start of 2025. 

What it means for Australian holders 

Australian retail buyers historically own a lot of silver, in both coins (Perth Mint kookaburras, kangaroos, lunars, and the Britannia and Maple Leaf releases popular in the Aussie market) and bars. The AUD price reflects both the underlying spot move and the exchange rate. Over the year both factors moved in silver's favour, which is why the AUD performance has been particularly strong. 

Silver's path is rarely a smooth line. The 94% year just gone is the inverse of the multi-year sideways grind that preceded it. Historically, silver has moved harder than gold in both directions, and large up-years have not always been followed by similar continuations. 

The structural drivers behind this year's move are still in place. Industrial demand from solar PV, EVs, and electronics continues to grow, the Silver Institute's multi-year supply deficit picture has not resolved, and central bank gold accumulation indirectly supports silver through the relative-value link. The gold-to-silver ratio is closer to its long-run average than it was a year ago. 

For Australian readers who use a dollar-cost-averaging approach to bullion, Ainslie's in-house tool Ainslie Saver supports regular scheduled purchases of gold and silver. Details at ainsliebullion.com.au/Ainslie-Saver. 

This is general market context, not personal financial advice. Anyone considering changes to their position should speak to a licensed financial adviser about their specific circumstances. 

Disclaimer: This article is general information only and does not constitute financial product advice. It does not take your personal circumstances into account. Ainslie Bullion does not provide financial advice. Speak to a licensed adviser before making investment decisions. Past performance is not indicative of future results.