Factors for the Increase in Silver Price
The silver price has recently experienced a remarkable increase. On Monday morning, the silver price reached $39.04 per ounce, which corresponds to an increase of about 1.7 percent compared to the previous week. This development is driven by several factors:
Supply-Demand Ratio
The silver market is experiencing a persistent supply deficit that has been ongoing for seven years. This deficit is exacerbated by increasing industrial demand, particularly in areas such as solar energy, defense, communications, digitization, and electronics.
Economic and Political Factors
The discussion of a potential “silver squeeze” could further stimulate investor interest. A “silver squeeze” refers to a situation where a large demand for physical silver leads to shortages, which could drive the price even higher. Additionally, anticipatory effects ahead of the implementation of U.S. import tariffs could influence the price.
Monetary Policy Developments
Support for interest rate cuts by the U.S. Federal Reserve in the second half of 2025 has pushed treasury yields down, benefiting gold and silver. Moreover, both precious metals benefit from the ongoing weakness of the U.S. dollar.
Investment Interest
Silver bars are considered an attractive investment, as they are affordable and offer proven crisis security. Predictions for the silver price, which could range between $32 and $40 per ounce, make them an interesting option for private investors.
Current Market Situation
The silver price is currently around $38.34 per ounce, reflecting a slight decrease compared to the highs. Despite this decline, interest in silver remains high, particularly due to the discussion around a potential “silver squeeze” and ongoing industrial demand.
Overall, the current silver market presents an interesting opportunity for investors looking for long-term price increases. However, it is important to consider market risks and possibly consult a financial advisor.