Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Following a dominant 2024, with prices surging to 12-year highs, silver is projected to climb even further in 2025. Fueled by prolonged supply shortages, strong industrial demand, and rising investor interest, silver is on track to reach $40 by next year’s end. Analysts point to shifting supply and demand dynamics, rising economic and geopolitical uncertainty, and safe-haven appeal as key drivers of the shiny metal’s potential rise.
2024’s Shiny Rally
Silver gets routinely overlooked in favor of gold, but the shiny metal posted one of the best returns in 2024 across all asset classes. The precious metal entered the year at $23.79/oz, eventually breaking out to the upside with a year-high of $34.86/oz. That 46% jump rivals returns offered by the record-setting rallies of both gold and the stock market in 2024, underscoring silver’s outsized gains. The market-wide post-election slump ate into the shiny metal’s gains but silver prices recovered most of the losses already. Despite sitting near relative peaks, silver is still slated for another strong year in 2025, according to experts.
Trump’s Mixed Impact
With a presidential transition on the horizon, attention is shifting away from broader market trends toward policy proposals and potential legislative changes. President-elect Trump’s slogan “Drill, Baby Drill!” has become a catch-all rallying cry of his laissez-faire approach to raw material exploration, extraction, and production. While not directed at the silver market, insiders anticipate a loosening of government regulations on environmental compliance and permitting, leading to swifter and cheaper silver output.
What about solar demand?
The solar sector is one of the fastest-growing sources of demand for silver. Some estimates suggest solar energy consumption could account for nearly 100% of the global supply by 2050. On the flipside of positive projections, some experts have expressed concerns that Trump’s rejection of climate policies and renewable energy initiatives could negatively affect silver prices.
However, silver bulls highlight Elon Musk’s role as a senior advisor in the upcoming administration, noting his position as a leading advocate for solar energy in the US. Overall, experts expect Trump’s leadership to be a mixed bag for the silver market, offering strong tailwinds in some ways and placing hurdles in others.
Lopsided Supply & Demand
Silver demand in 2024 is expected to achieve 7% growth from the previous year, according to the Silver Institute, largely due to photovoltaic applications. This growth in global consumption is slated to continue in 2025, regardless of US policies. The rising demand is running up against stagnant supplies, putting bullish pressure on silver prices.
The Great Silver Bull author Peter Krauth explains, “I expect to see renewed upward price pressure since silver miners are unable to grow output.”
The challenge of limited silver supply is further compounded by the concentration of silver deposits in volatile regions like Russia, which is resulting in stagnant and unpredictable output—all factors that contribute to higher silver prices.
Potential Obstacles to Silver’s Rise
Although the silver’s outlook for 2025 is largely positive, some challenges could dampen the shiny metal’s potential gains.
Economic Slowdown —Economic challenges could weigh on silver consumption in renewable energy sectors, especially from alternative energy leaders such as Europe and China.
Green Rollback — If Trump 2.0 goes full throttle on fossil-fuel use and green energy rollbacks, waning solar demand might slow silver’s momentum.
Recession Fears — A steep market-wide sell-off spurred by recession fears (or the real deal) could seep into the silver market, reducing demand and prices.
Where are prices headed?
Krauth sees silver hitting $35 in Q1 of 2025 and potentially stretching to $40. Julia Khandoshko, the CEO of Mind Money, is slightly more cautious while remaining silver-positive. She expects the shiny metal to hit $35 before falling back to $30. These healthy projections fall right in line with general 2025 silver price predictions from experts across disciplines who see the silver metal trading higher throughout next year.