IGI Logo

The global silver market is projected to see a 21% narrower deficit in 2025, totaling 117.6 million troy ounces, according to the Silver Institute. This is attributed to a 1% dip in demand and a 2% rise in supply. Spot silver prices have surged 12% this year, following a 21.5% increase in 2024, supported by gold's rally amid global uncertainties. Industrial demand remains strong after reaching a record high in 2024, but jewellery and silverware demand are set to fall. Coin and bar investments are expected to rise by 7% in 2025 after a significant drop last year, largely influenced by the U.S. presidential election outcome and market saturation.

Key Highlights

* Silver deficit to narrow 21% in 2025 to 117.6M ounces

* Spot silver prices rise 12% in 2025 after 21.5% gain in 2024

* Investment in coins and bars to grow 7% after 2024 slump

* Industrial silver demand to stay steady at 2024’s record high

* Jewellery and silverware demand to decline amid weak economic outlook

Silver prices have continued their strong upward trajectory in 2025, with spot silver gaining 12% so far this year, following an impressive 21.5% rise in 2024. This price performance is being supported by a rally in gold prices, which is largely driven by rising global uncertainty and new U.S. tariffs introduced under President Donald Trump. The safe-haven appeal of precious metals, particularly during turbulent economic and geopolitical times, has helped maintain investor interest in silver.

The Silver Institute reported that the global silver deficit is expected to narrow by 21% this year to 117.6 million troy ounces, due to a combination of a 1% fall in demand and a 2% increase in supply. While industrial demand remains robust—matching 2024’s record high of 680.5 million ounces—other segments like jewellery and silverware are expected to decline amid economic headwinds.

In contrast, investment demand for silver coins and bars is forecast to rise 7% in 2025, recovering from a steep 22% fall last year that brought it to a five-year low. The U.S. market saw the sharpest decline in 2024, with a 46% drop, as investors took profits and reacted to political developments. This year, improving sentiment and portfolio diversification amid recession fears are likely to support a rebound.

However, ongoing geopolitical tensions, recessionary risks, and prolonged tariffs could further impact industrial demand, posing downside risks to the overall silver market.

Finally

Silver's outlook for 2025 remains mixed, with strong investment interest balancing economic concerns that weigh on industrial and decorative demand.

Above views are of the author and not of the website kindly read disclaimer