SILVER IS SET TO SOAR: 2025 COULD BE A MONSTER YEAR FOR THE METAL

EDITOR'S NOTES

Silver is shaping up to be the standout metal of 2025, with analysts predicting a 14% gain by year’s end. Unlike gold, which investors turn to purely as a store of value, silver benefits from both monetary and industrial demand—and that industrial demand is about to skyrocket. The solar energy sector, along with AI and electrification, is driving record-breaking consumption, pushing the silver market into a long-term supply deficit. As a result, StoneX expects silver prices to hit $33 per ounce by year’s close. With investor interest already heating up, 2025 could be the year silver finally breaks out.

Frank Balm Jan 24, 25

Silver: The Sleeper Investment That’s About to Wake Up

Most people don’t realize this, but silver isn’t just some second-rate version of gold. It’s a powerhouse metal that’s about to crush the competition in 2025. If you’re paying attention, this is a golden (or should I say silver?) opportunity to get ahead of the curve.

According to StoneX Financial’s 2025 Annual Metals Outlook, silver is set to outshine both precious and industrial metals this year, riding on two massive tailwinds:

Its historical role as money (following gold’s lead).
Exploding demand from industrial sectors like solar energy, AI, and electrification.

The message is clear: Silver isn’t just another metal—it’s a wealth-preserving, high-demand, low-supply asset that could take off in a big way.

Why Silver Prices Are About to Go Wild

StoneX’s analysts, Rhona O’Connell and Natalie Scott-Gray, have pointed out that silver is moving into a long-term supply deficit, and when you mix that with surging industrial demand, you have a recipe for skyrocketing prices.

Even after a massive 22% gain in 2024, silver’s momentum isn’t slowing down. In fact, StoneX predicts silver will hit $33 per ounce by the end of 2025, an increase of over 14% from last year’s close of $29/oz.

But why? What’s driving this surge? Two words: Industrial demand.

The Solar Boom Is Eating Up Silver Supplies

If you think silver is just for coins, jewelry, and bullion, think again. The real game-changer is solar energy.

Silver is an essential component in solar panels, and demand is surging.
The International Energy Agency (IEA) expects solar-related silver demand to grow by 16% annually through 2027.
Newer photovoltaic (PV) cells actually use more silver than before, meaning tech advancements are making silver more critical—not less.

And here’s the kicker: There’s no viable substitute. Unlike other metals that can be replaced with cheaper alternatives, silver’s conductivity is unmatched. The world wants solar energy, and solar needs silver. Period.

Artificial Intelligence (AI) and Electrification: The Silent Silver Killers

The AI revolution isn’t just about flashy robots and self-driving cars—it’s about infrastructure. Massive amounts of silver will be needed to power AI data centers, high-performance computing, and the electrification of transport.

AI requires high-efficiency power grids—silver is a key component.
The electrification of transport (EVs, charging stations, power storage) is another silver-hungry trend.
All this means silver demand is set to explode, just as supply is shrinking.

Silver’s Supply Crunch: The Perfect Storm

Here’s where things get really interesting. Silver isn’t like gold—it’s mostly mined as a byproduct of other metals like copper, lead, and zinc. That means silver production doesn’t respond directly to price spikes. Even if silver prices double, mining companies won’t necessarily ramp up output.

And here’s what’s happening right now:

From 2011 to 2023, silver was in a surplus (meaning more silver was produced than used).
That changed in late 2024, when silver officially moved into a structural deficit—and this gap is only going to widen.
Inventories are being drained, and investors are gobbling up silver faster than it can be mined.

This is a textbook setup for a supply squeeze.

Silver’s “Explosive” Price Action: Why It Moves Like Lightning

One of the wildest things about silver is its volatility—when it moves, it moves fast. Historically, silver tends to follow gold on the way up, but it moves twice as much.

Why? Because of silver’s dual identity:

As a precious metal, it tracks gold—so when gold goes up, silver follows.
As an industrial metal, it tracks copper—so when the economy is booming, silver gets extra fuel.

The bottom line? When gold rises, silver explodes.

Geopolitical Risks: The Wild Card for Silver in 2025

One final factor to consider is geopolitical risk. Silver isn’t just another commodity—it’s a strategic metal. Any trade wars, tariffs, or supply chain disruptions could send prices soaring overnight.

Take Mexico and Canada, for example:

Mexico supplies 25% of the U.S. silver imports, and Canada another 10%.
If Trump follows through on potential tariffs, silver markets could freak out overnight.
In past instances, even rumors of tariffs caused price spikes.

Bottom line: Expect volatility—but also massive opportunity.

Final Verdict: Silver Is the Metal to Watch in 2025

StoneX’s projection is clear:

Silver is moving into a supply deficit for the first time in years.
Industrial demand is soaring, especially from solar and AI.
Prices are expected to hit $33/oz by the end of 2025, a 14% gain from today.

This isn’t just speculation—it’s fundamental economics. The supply-demand squeeze is real, and when it hits full force, silver prices could run much higher than anyone expects.

🚨 If you’re not holding silver, now is the time to get in. 🚨