The current market situation for silver is characterized by a combination of strong fundamentals and technical signals indicating an impending breakout. The demand for silver is especially supported by the global trend towards decarbonization and the expansion of e-mobility. These developments are leading to a significant increase in industrial demand, as silver is indispensable in solar panels, electric vehicles, and other green technologies.
Fundamental Drivers
- Industrial Demand: The production of solar panels and e-vehicles requires over 300 million ounces of silver annually. Industrial demand is projected to grow by about 3% per year.
- Supply Deficit: The global supply of silver is around 1.05 billion ounces per year, while demand is approximately 1.2 billion ounces – a deficit of about 149 million ounces for the fifth consecutive year.
- Weak US Dollar: A weaker Greenback makes silver cheaper for international buyers, thereby supporting the price rally.
- ETF Inflows: Strong inflows into silver-backed ETFs further boost investor demand for the precious metal.
Price Development & Forecasts
Several banks and analysts have significantly raised their price targets for silver:
- UBS expects a rise to up to 40 US dollars per ounce in the coming months; in the short term, the target has already been increased to 38 US dollars.
- WisdomTree & Metals Focus also forecast a price of up to 40 US dollars in the third quarter of 2025.
- Other Analysts see potential for an increase to up to 50 US dollars per ounce by year-end – a possible gain of over 40% compared to current levels.
Impact on Investments
The positive development of silver prices has direct implications for investments in:
- Silver Mining Stocks: Companies with strong production or exploration activities particularly benefit from rising price levels.
- Silver-Backed ETFs: These provide private investors with an easy way to participate in the upward trend.
- Direct Precious Metal Investments: Physical silver remains attractive as a hedge against inflation and currency risks.
Conclusion
The combination of a structural supply deficit, rising industrial demand (especially from green technologies), a weak dollar, and strong ETF inflows clearly supports the continuation of the bullish trend in silver. For private investors, this presents various opportunities – through stocks of mining companies, physical investments, or ETFs. Another price increase seems very likely; some analyst firms even foresee significantly higher price targets than previously assumed.