Silver’s muted end to 2024 may not weigh on its performance this year with many experts expecting the shiny metal to outshine its gold counterpart. Increasing industrial demand will likely play a major role in driving prices as consumption rises sharply in the solar and AI sectors. This potential boom in demand would further squeeze an already tight supply, adding more upward pressure. As the gold-to-silver ratio reaches new highs, analysts suggest silver is undervalued.
Industrial Demand Soars
Silver’s unique position as an investment and industrial metal gives it a broader, more diversified demand. Experts predict its industrial applications will help support prices, especially as silver-intensive industries expand. In 2024, industrial demand surged by 7%, and that growth is expected to carry into 2025 with photovoltaics and AI as the fastest growing drivers.
Solar Shines Bright
Photovoltaics, aka solar panels, will reach another installation milestone in 2025, according to WisdomTree, as renewable energy demand booms and governments continue offering incentives.
Here are some stats confirming a positive outlook:
- Solar demand could eat up 100% of silver demand by 2050.
- Solar PV capacity added from 2024 to 2030 will be three times higher than the previous six years.
- Modern panels utilize up to 120% more silver per KW than prior models.
- Photovoltaic demand more than tripled as a share of overall silver demand between 2015 and 2024.

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The artificial intelligence (AI) revolution is leading to a broad increase in silver demand as the shiny metal is a core component of the technology.
As Capital Economics assistant economist Ankita Amajuri explains, “We remain confident that in time, the use of artificial intelligence will grow to all sectors, and the resulting demand for semiconductor chips will drive strong demand growth for silver.”
This prediction is echoed by WisdomTree whose analysts indicate AI applications are set to “further increase silver demand.”
Stagnant Supply
This surge in industrial consumption is running up against a stagnant silver supply which has remained largely unchanged for nearly a decade. This tension is bullish for silver prices as investors bid for limited inventory.
As Amajuri explains, “The silver market has already been in a deficit since 2019, and prices have doubled over that period.”
2025 is on track to be the fifth consecutive year of a silver supply deficit.
While above-ground silver is available, “it is held by investors who require higher prices to incentivize sales,” as WisdomTree notes.
Silver is “Undervalued”
Silver isn’t setting new records like gold, but its relative price has experts suggesting it’s undervalued. The gold-to-silver ratio, which measures how many ounces of silver are needed to buy one ounce of gold, is reaching new highs near 90:1.
Since 1971, this metric has averaged 65:1, suggesting silver is currently “cheap” compared to gold.
“Historically, this ratio has faced resistance around 92, followed by sharp corrections in silver’s favor,” explains WisdomTree analysts, “This technical indicator suggests silver may be poised for another upward move.”
How high can silver prices go?
The average silver price forecast for 2025 hovers around $37 which would represent a 15% surge. Yet, some analysts are calling for higher prices. WisdomTree analysts anticipate a 23% increase in silver prices throughout 2025, outshining their gold growth prediction of 17%. Capital Economics aims for $35 by the end of 2025 and $38 by 2026.