The silver has just reached 51 dollars per ouncea level not seen since 1980. The metal is up 75% so far this year, even surpassing the spectacular gold rise. This increase corresponds to the growing industrial demand for said metal, especially in a context in which mining production stagnates and forms an imbalance that puts a price on the shortage.
Structural deficit for the fifth consecutive year. The silver market has been in supply deficit for years. Mining production is not growing at the rate that the industry needs, and this gap is reaching historic levels. Metals Focus projects that the 2025 deficit will be 187.6 million ounces, one of the highest figures ever recorded. Therefore, less and less silver is extracted than the world consumes.
The technology that devours silver. industrial demand It already represents 59% of total consumption of silver, according to the Silver Institute. Solar panels are behind much of that pressure. And it is that are expected to absorb 195.7 million ounces this year. But it is not the only thing: the semiconductors that shape artificial intelligence, electric vehicles and consumer electronics also pull strongly on this metal.
A refuge at a lower cost than gold. Silver also benefits from the drag effect of gold, which just surpassed $4,000 per ounce for the first time in its history. Many investors who see the gold market as too saturated they are looking towards the silver as a more accessible alternative to protect against economic uncertainty, geopolitical instability and the weakening of the dollar. Flows into silver-backed exchange-traded funds have already reached 2025 the highest levels since 2020.
The psychological barrier of $50. The silver has never been able to maintain sustainably above $50. Each time it has approached that level (in 1980 and in 2011) it has been followed by deep corrections that have scared away investors. “Psychologically, silver has never gone above $50 and has really stayed there,” explained David Morgan, editor of the Morgan Report, to the specialized media Investing News Network. Morgan calls it “crossing the Rubicon,” a defining moment that could open up uncharted territory for the metal’s price.
India strongly joins the demand. Since its regulator approved silver exchange-traded funds in 2021, India has become a key source of new demand. Silver-backed products accounted for 40% of the country’s total retail investment in 2024, and Indian imports are at all-time highs. China, for its part, industrial consumption is increasing for technological installations and solar panels. Two Asian giants pushing demand at the same time.
And now what. Morgan don’t wait Silver will shoot up to $70 in the short term, but it will consolidate above $50 if it manages to cross that barrier solidly. HSBC projects that the price could reach $55 in 2026 before retreating in the second half of the year. What seems clear is that, as long as the technology industry continues to need more silver than it can be mined, the pressure on the price is not going to disappear.
Cover image | Scottsdale Mint
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