Silver Price Forecast: Top Trends That Will Affect Silver in 2025

Silver has experienced a remarkable surge in 2024, reaching levels unseen in over a decade. This upward trajectory is expected to continue into 2025, driven by several key factors influencing both supply and demand dynamics.

Industrial Demand and the Green Transition

A significant driver of silver's ascent is its critical role in industrial applications, particularly within the renewable energy sector. The Silver Institute forecasts that industrial demand will reach 702 million ounces in 2024, marking a 7 percent increase from 2023. This growth is largely attributed to the expansion of photovoltaic technologies and other green energy initiatives, which heavily rely on silver for their manufacturing processes.

Investing News

Supply Constraints and Market Deficits

On the supply side, challenges persist. Global mine production has remained relatively flat, with only a 1 percent increase to 837 million ounces anticipated in 2024. When combined with secondary supply from recycling, total silver availability is projected to be around 1.03 billion ounces. However, this falls short of meeting the total demand, estimated at 1.21 billion ounces, resulting in a significant market deficit.

Investing News

Market Outlook and Price Projections

Analysts maintain a bullish outlook for silver as we approach 2025. David Morgan, publisher of the Morgan Report, suggests that silver could reach approximately US$40 per ounce in 2025, with the potential for a more pronounced surge in 2026.

Investing News

Similarly, Peter Krauth, editor of Silver Stock Investor, notes that while silver may experience short-term volatility, it is poised to establish a new price floor around US$30, with the possibility of further appreciation as market fundamentals strengthen.

Investing News

Investment Opportunities

For investors seeking to capitalize on silver's upward trend, several companies offer substantial exposure to the metal. Pan American Silver Corp. and Wheaton Precious Metals Corp. are notable examples, with analysts highlighting their potential to benefit from the ongoing rally.

MarketWatch

Additionally, exchange-traded funds (ETFs) like the iShares Silver Trust provide a more direct investment avenue, reflecting silver's price movements.

Conclusion

In summary, the convergence of escalating industrial demand, particularly from the renewable energy sector, alongside persistent supply constraints, is setting the stage for a favorable silver market in 2025. Investors should closely monitor these developments, as silver continues to present compelling opportunities in the evolving economic landscape.