Silver prices have demonstrated remarkable strength in 2024, reaching their highest levels in over a decade. Despite notable price fluctuations, multiple factors—including growing industrial demand, safe-haven buying from investors, and constrained mining supply—have driven silver prices up nearly 35% this year, outperforming gold, which has seen a 32% increase.
Looking ahead to 2025, industry experts and analysts remain optimistic about silver’s performance and predict it will continue to outpace gold next year.
In November 2024, Jason Weber, President, CEO, and Director of Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF), elaborate on the company’s primary assets in an interview with METALS 100. These assets include the wholly owned Haldane Silver Project (located adjacent to Hecla Mining Company’s Keno Hill Mine project) and the Tim Silver Project (under option to Coeur Mining, Inc.). Silver North has completed its 2024 drilling campaign at the fully owned Haldane Property in the historic Keno Hill Silver District in Yukon.
Market analysts expect silver prices to maintain an upward trajectory in 2025. It is anticipated that prices could surpass $35 per ounce in the first quarter and approach the $40-per-ounce mark later in the year. In the longer term, due to persistent supply-demand imbalances that are unlikely to be resolved quickly, silver prices may even challenge the historical high of $50 per ounce within a few years.
In its recently published 2025 Commodity Outlook report, TD Securities commodity strategists projected that silver prices will once again outperform gold in 2025, with the average spot price during the final months of the year reaching $36 per ounce. This bullish prediction is primarily based on expectations of rapid economic recovery in both China and the United States, which will likely accelerate inventory depletion, coupled with sustained demand growth from the solar energy sector.
The concept of the “Silver Squeeze,” which gained popularity in 2024 as one of the hottest topics in the commodities market, is expected to carry forward into 2025, amplifying silver’s growth potential. While silver’s movements have largely mirrored gold in the past year, the silver market is now displaying unique momentum that hints at continuing stockpile reductions, which may eventually deplete free-floating inventories.
Silver Price Forecast by TD Securities:
The gap between silver supply and demand is expected to persist. According to the Silver Institute, industrial silver demand in 2024 is projected to increase by 7% year-over-year to 702 million ounces, contributing to total demand of 1.21 billion ounces. However, silver mine production will only increase modestly by 1% to 837 million ounces, with total supply (including recycled silver) reaching just 1.03 billion ounces.
In 2025, as above-ground silver inventories continue to narrow, compounded by heightened global geopolitical risks, the silver market’s tight supply-demand dynamics are likely to intensify further, adding upward pressure to prices.
Silver plays a critical role in new energy technologies, particularly photovoltaic (solar panel) applications. While uncertain U.S. policy may weigh on domestic demand, regions like Europe and China remain committed to green energy initiatives, driving a steady increase in silver consumption.
Moreover, advancements in electric vehicle (EV) production and 5G technology are creating new sources of industrial demand for silver, further reinforcing its status as a key metal for the future.
With strong industrial utility, tight supply-demand dynamics, and growing demand from green energy and technology sectors, silver appears poised for continued gains in 2025 and beyond. As experts predict silver to maintain its exceptional performance and even potentially break historical price records, it remains a favored choice for both industrial consumers and investors seeking opportunities.
