Fine, homogeneous, dual‐phase Ag–YBa2Cu3O7–xcomposite powders were prepared by a simple colloidal sol–gel coprecipitation technique that was previously used for synthesis of single‐phase YBa2Cu3O7–x. Samples containing up to 60 wt% silver were synthesized. Silver neither reacted with nor degraded the YBa2Cu3O7–x. The presence of silver was found to aid the oxygenation of the precursor during calcination to form orthorhombic YBa2Cu3O7–x. Measurements made by ac magnetic susceptibility showed no significant degradation in transition temperature for samples containing up t