Silver prices are showing increasingly solid fundamentals in mid-2025, driven by a supply deficit, surging industrial demand, and investor interest in safe haven assets. This combination makes silver one of the precious metals with the most promising growth prospects this year.

This year is the fifth consecutive year of a global silver supply deficit, with a projected shortfall of 117–149 million ounces. Although mining production has increased slightly, its growth has not been able to keep up with the high surge in demand.

Silver is a key component in clean technology and future energy. The need for solar panels, electric vehicles, and electronic devices has driven industrial silver consumption to record levels, estimated to reach 700 million ounces in 2025. This trend strengthens silver's position not only as an investment asset, but also as a global strategic material.

Amid geopolitical uncertainty and the threat of inflation, silver is again being eyed as an alternative safe haven. The flow of funds to silver ETFs has increased, especially in the US and Indian markets. In addition, retail investor interest in physical silver has also soared, reflecting market confidence in the durability of this metal amid economic shocks.

With the combination of these positive factors, the year-end silver price projection is in the range of US$40–50 per ounce, with a long-term optimistic scenario of up to US$77–100. However, investors need to pay attention to several major risks such as the strengthening of the US dollar, the Fed's interest rate policy, and the potential for a global slowdown due to trade wars and geopolitical tensions.

Source: (mrv@Newsmaker)