Strong Demand Drives the Silver Market
The outlook for the silver market in 2025 is extremely positive and represents a strong buy signal, indicating a potential mega breakout in silver prices. Several factors contribute to this optimistic market picture.
Increased Industrial Demand
A key component of the rising demand is the global trend towards decarbonization as well as the growing sector of e-mobility and high-tech electronics. In particular, the production of solar panels and electric vehicles requires over 300 million ounces of silver annually. An increase in industrial demand of approximately 3% is expected.
Structural Supply Deficit
Global silver demand is expected to reach around 1.2 billion ounces in 2025, while supply will only be about 1.05 billion ounces. This structural supply deficit marks the fifth consecutive year of deficit with a shortfall of approximately 149 million ounces.
Macroeconomic Factors
Supporting macroeconomic factors include a weaker US dollar, making silver cheaper for international buyers, as well as possible interest rate cuts in the US and strong inflows into ETFs.
Price Level Forecasts
Analysts from UBS, WisdomTree, and Metals Focus forecast a price increase of silver to around 40 to 50 US dollars per ounce by the end of 2025. This would represent an increase of approximately 40% compared to current prices.
Overall, everything indicates that fundamental factors and macroeconomic conditions are preparing the market for a strong upward movement in silver prices. Investors should therefore remain vigilant, as a significant price breakout may be imminent.