Introduction
A strong buy signal for silver is manifesting due to several fundamental and macroeconomic factors that make a mega-breakout of silver prices likely in the near future. In this blog post, we will shed light on the key drivers influencing this development.
Increase in Silver Forecasts
The Swiss banking giant UBS forecasts a rise in the silver price to up to 40 US dollars per ounce by 2025, which represents a significant increase from current prices. In the short term, the forecast has already been raised to 38 US dollars.
Rising Demand Due to Decarbonization and E-Mobility
A major driver of the price increase is the rising demand for silver, particularly from the trend toward decarbonization and e-mobility. These industries increasingly require silver for batteries, photovoltaics, and other green technologies.
Structural Supply Deficit
In addition, there is a structural supply deficit: global demand is expected to be around 1.2 billion ounces, against a supply of only about 1.05 billion ounces. This would mark the fifth consecutive year of deficit with a shortfall of approximately 149 million ounces.
Macroeconomic Support and Technical Analysis
Other supporting factors include strong ETF inflows, serving as an alternative investment to the US dollar, as well as a weaker dollar overall. Potential interest rate cuts in the US could further boost the price. Technically, the weekly chart shows a stable upward trend structure with supports between 20 and 30 US dollars per ounce, indicating further growth potential in the medium term.
Conclusion
The mega-breakout in silver is imminent, driven by sustainable trends such as decarbonization and electromobility, as well as fundamental market imbalances. Investors should closely monitor this development.