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.
Silver has gained nearly 18% this year, reaching an annual high of $34/oz. This strong out-of-the-gate performance is propelled by gold’s record-setting rally, rising safe-haven demand, and robust industrial consumption. The shiny metal’s lower price per ounce and smaller market result in greater volatility but more potential gains, allowing investors to optimize returns while avoiding gold’s higher price tag. Over the next year, analysts at Australian-based investment platform IG see silver extending to $38 to $40, representing a significant increase from its current position.
Gold Leads, Silver Follows
Historically, silver and other precious metals have followed gold’s lead. This trend is playing out once again in 2025 as the shiny metal rises alongside its larger cousin, which recently surpassed the $3,000 barrier. Although silver hasn’t broken all-time highs, it has posted outsized returns compared to the yellow metal, which has yielded 16% from the beginning of the year to its all-time high.
Uncertainty Hikes Safe-Haven Demand
Silver prices benefit from heightened safe-haven demand as people seek protection amid a tumultuous landscape of economic upheaval and geopolitical risks. At home, the average American is faced with sluggish economic output, stubborn inflation, and lower GDP growth. On the world stage, the status quo is rattled by ongoing wars, shifting trade relations, and an unraveling reserve currency.
This uncertainty is exacerbated by a dovish Federal Reserve that hesitates to adjust rates in either direction. With interest rates on the lower end of the spectrum, the opportunity cost of owning non-yielding assets is already diminished. The appeal is set to grow, with two rate cuts expected in 2025. The combination of rising economic turmoil, lower returns on yielding investments, and record gold prices drives up retail demand for silver.
Industrial Consumption Set to Grow
Unlike gold (primarily used as an investment), silver is deeply ingrained within modern technology and manufacturing. This industrial use provides the shiny metal with another source of robust demand, helping to stabilize prices even during bouts of economic downturn. In 2024, industrial consumption grew by 7%, and this growth is anticipated to spike in the future, especially in the green energy sector. For instance, experts anticipate solar energy demand to comprise nearly 100% of the annually available silver by 2050. This steadily climbing demand contrasts with a stagnant supply, which places more upward pressure on silver.
Cheaper Entry for Higher Returns
With the gold rally’s momentum remaining strong and demand on the climb, silver’s future is shining bright. Many experts highlight how silver’s lower price point and relative distance from all-time highs present a unique buying opportunity for investors deterred by gold’s elevated price tag. The gold-to-silver ratio, which measures how many ounces of silver are needed to buy an ounce of gold, remains near historic highs. This indicates that silver is undervalued compared to its golden counterpart.
Silver Price Forecasts
With gold paving the way and analysts projecting even stronger percentage gains for silver, many are wondering how high it can go. The average 2025 silver price forecast is around $37, an increase of nearly 9% from current levels. IG shares this bullish outlook, expecting silver to climb as high as $38 to $40 this year, fueled by gold’s momentum and rising safe-haven and industrial demand. Analysts highlight how the shiny metal’s relatively affordable price point and smaller market could make for outsized gains compared to gold, making it a compelling option for budget-conscious investors or those looking to diversify their precious metals portfolios.