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Silver prices climbed 25% in the first half of 2025, nearly matching gold’s performance. An elevated gold-silver ratio highlighted silver’s relative value, while optimism in industrial metals due to US-China trade talks added support. Silver-backed ETPs saw record inflows, with holdings reaching $40 billion for the first time. Futures trading showed robust investor confidence, with net longs up 163% year-to-date. Retail demand varied globally—Europe and India saw gains, while the US faced profit booking and weaker demand. Looking ahead, silver’s momentum hinges on investor reactions if prices break the $40 mark.

Key Highlights

* Silver’s average price rose 25% in the first half of 2025.

* Gold-silver ratio pointed to undervaluation and attracted investors.

* Silver ETP holdings hit a record value of over $40 billion.

* Net managed money positions on CME soared by 163% from 2024.

* European and Indian retail demand rose, but US demand fell 30%.

Silver prices have outperformed expectations so far in 2025, rising by 25% in the first six months—almost matching gold’s 26% gain for the same period. This impressive performance was supported by a high gold-silver ratio in April and May, which made silver appear undervalued to long-term investors. Additionally, positive sentiment in the broader industrial metals sector, driven by renewed trade talks between the US and China, further strengthened silver’s price position.

Investor interest was especially visible in the surge of silver-backed exchange-traded products (ETPs). Net inflows reached 95 million ounces by mid-year, already surpassing 2024’s total inflows. Global ETP holdings climbed to 1.13 billion ounces, with the value crossing the $40 billion mark for the first time in June. The sharp jump in June alone was the biggest monthly rise since the Reddit-fueled silver squeeze in early 2021.

Futures trading activity underlines this bullish trend. On the CME, net managed money positions grew by an impressive 163% from end-2024 levels, showing institutional investors’ continued faith in silver as a safe store of value.

Retail investment painted a mixed picture. While European and Indian demand remained healthy—India saw a 7% year-on-year increase—US retail demand slumped by 30% due to profit booking and fewer safe-haven purchases.

Going forward, the coin and bar market could witness strong two-way trading. A key uncertainty remains whether silver crossing the $40 mark will spur more buying or trigger heavy profit-taking.

Finally, Silver’s strong performance in 2025 highlights investor confidence, but its future path depends on market sentiment and reactions as prices test key psychological levels.

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