Silver has entered a new phase. Breaking above US$65/oz, the metal has significantly outperformed gold and other precious metals in 2025, driven less by speculation and more by structural industrial demand and persistent supply shortages.
Unlike previous rallies, this move reflects silver’s growing role as a critical industrial input. Solar energy, electronics, electric vehicles, data centres, and advanced manufacturing are now major demand drivers. Photovoltaic production alone consumes close to 20% of global silver supply, and that figure continues to rise as renewable energy capacity expands.
At the same time, supply remains constrained. Global silver markets are running their fifth consecutive annual deficit, with mine production plateauing and recycling unable to bridge the gap. Declining ore grades, permitting delays, and geopolitical concentration in key producing regions continue to limit new supply.
The result is a clear divergence from gold. While gold remains primarily a monetary hedge, silver is increasingly behaving like a strategic industrial commodity with monetary upside, a combination that has supported its outsized gains this year.
From a market perspective:
Interestingly, silver mining equities have lagged the metal itself, reflecting rising production costs, regulatory pressures, and investor preference for direct exposure via physical silver or ETFs.
Silver’s trajectory will hinge on:
Silver’s rally is not just about sentiment—it’s about fundamentals. With strong industrial demand, constrained supply, and renewed investor interest, silver is increasingly positioned as both a growth-linked commodity and a store of value. As always, volatility remains part of the equation, but the structural case for silver has rarely been stronger.
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