Silver vs inflation: did it beat the dollar?
1,141% × 91%
Updated July 1, 2026 · daily closing prices (not exportable) · BLS / FRED (CPIAUCNS)
Since 2001, Silver is up 1,141% while U.S. consumer prices rose 91%. Silver far outpaced inflation — but the ride was brutal: its worst drop was 72%. Figures in U.S. dollars.
Base 100 since 2001
Why compare Silver (XAG/USD) and U.S. inflation (CPI-U)
Silver carries gold's monetary reputation plus a heavy industrial demand, so the question is whether that dual role helped or hurt it as a hedge against the dollar's eroding purchasing power. Comparing silver to inflation tests it against U.S. CPI, since the metal pays no interest and the return is pure price. The durable pattern is volatility. Inflation climbs in a slow, steady line, while silver swings far harder than gold, with sharper rallies and deeper drawdowns driven by both monetary demand and the industrial cycle. Over long windows it has at times outrun the price level and at times lagged it, and the violence of the ride has often cost more than the protection paid.
Returns by window
| Window | Silver (XAG/USD) | U.S. inflation (CPI-U) |
|---|---|---|
| 1 year | 58% | 4% |
| 5 years | 126% | 24% |
| 10 years | 184% | 39% |
| since 2001 | 1,141% | 91% |
The price of return: risk
| Asset | Annual volatility | Worst drop |
|---|---|---|
| Silver | 31% | -72% |
| Inflation (CPI) | 1% | -4% |
$10,000 in each, since 2001
| Asset | Value today |
|---|---|
| Silver | $124,143 |
| Inflation (CPI) | $19,072 |
Frequently asked questions
Did Silver beat inflation?
Over the period, Silver returned 1,141% while U.S. consumer prices rose 91%. The gap is what the asset earned beyond simply keeping pace with the dollar.
Does this account for the dollar losing value?
Yes. The inflation line is U.S. CPI, the measure of how much purchasing power the dollar lost over the same period. Returns above that line are gains in real terms.
Does a higher return mean a better investment?
Not on its own. A higher return came with higher risk here — the volatility and the largest drop on this page show how much the value swung along the way.
Keep exploring
Descriptive, educational content computed from official public data. Not investment advice. Past performance does not guarantee future results.