Silver Price Forecasts & Predictions for 2025

Industrial silver demand is the biggest driver behind the white metal’s growth, according to the Silver Institute. In 2024, industrial consumption is on track for a 7% gain, pushing overall demand to its second-highest point on record. Industrial applications for silver are expected to rise in the future, especially from the renewable energy sector where silver’s unique physical properties enjoy widespread use. For perspective, solar energy could eat up nearly 100% of the annual silver supply by 2050. This steady climb in demand is expected to continue pushing silver prices higher in 2025, especially as supply remains tight.

The availability of physical silver to buy and sell has remained largely unchanged for over a decade. The silver supply reached 1.07 billion ounces in 2010 and is projected to settle at 1.03 billion ounces in 2024, representing a 4% drop over the course of 14 years. This stagnant supply is largely owed to growing extraction costs, the waning quality of available mines, and steep regulatory hurdles. The combination of booming industrial demand and sluggish supply is expected to cause a massive silver deficit in 2025. This tension will likely drive silver prices higher as more buyers compete for limited silver resources.

Gold is the staple metal reserve for central banks the world over. However, silver is getting a second look as governments prioritize diversification and physical assets in an increasingly volatile economic climate. In the midst of a years-long gold binge, Russia has signaled its intention to buy silver as part of its strategic reserves. Furthermore, the BRICS coalition of emerging economies announced plans to develop a precious metals exchange to rival Western nations, further indication of a growing interest in silver.

As the most widely traded precious metal, gold sets the tone for other assets in the space, including silver. With experts raising their gold price predictions for 2025, the yellow metal's bullish momentum signals a favorable outlook for its silver counterpart. The close link between these two metals has led to the development of a key metric called the gold-silver ratio, the amount of silver required to equal one ounce of gold. In the 21st century, this ratio has averaged around 60:1. Currently, it stands over 80:1, suggesting silver may be undervalued compared to gold’s peak.

The precarious US economy is set to benefit silver prices in the coming years. Debt is the most serious threat to the nation’s fiscal health, according to a Federal Reserve survey. The more debt that weighs on the dollar, the more investors seek out more reliable and stable assets like silver. The incoming Trump administration has promised to shake up the status quo, but experts expect these bold economic policies to add another $7.75 trillion, as a conservative estimate. While the national debt skyrockets, inflation remains higher than expected, stretching to 2.7% at the end of 2024. This steady erosion of buying power is another nudge toward safe-haven instruments.