Silver is poised for a significant price surge due to supply deficits and increased industrial demand

From Yahoo Finance: 2025-07-03 12:24:00

Silver, often overshadowed by gold, is making a comeback due to industrial demand, monetary interest, and supply deficits. Historical patterns suggest a breakout is imminent, as silver supply declines and demand for solar panels and electronics rises. Several states are re-legitimizing silver as currency, signaling a potential demand shock.

Silver’s industrial demand exceeds supply, with mines facing declining production and lack of investment. The rise in silver’s industrial usage, particularly in solar panels, has transformed it from a relic to a modern necessity. Industrial demand for silver remains price-inelastic, driving up consumption even at higher prices.

Global silver supply is dwindling, with inventories draining and recycling declining. The gold-to-silver ratio suggests silver prices may rise by more than 50% to return to historical norms. Industry mergers signal smart money betting on silver’s rise, with silver’s all-time high of $50 possibly becoming the new floor instead of the ceiling.

For serious investors, owning physical silver and creating a diversified silver portfolio is recommended. The silver market’s volatility requires a strategic approach, with silver poised for a potential breakout. Gold may remain the headline, but silver is gearing up for a significant price surge, making it a valuable investment opportunity.

Read more: Silver could be the trade of the decade. This is how to play it so you don’t miss out.