On Monday, the price of silver in global markets reached a new historical high, surpassing the $47 per ounce mark for the first time. During the day, the metal increased by 1.53% and closed at $46.78, while the spot price peaked at $47.04. This price surge is attributed to optimism regarding a potential reduction in key interest rates in the U.S. and stability in financial market sentiments.
This is reported by Finway
Demand Rises Amid Limited Supply
The release of inflation data (PCE) has strengthened expectations that the U.S. Federal Reserve may lower interest rates for the second time this year. This has heightened investor interest in “non-yielding” assets, particularly silver, which is traditionally seen as a safe haven during economic uncertainty.
Silver has dual value: it serves not only as a means of saving but also as an important industrial resource. The metal is widely used in the production of solar panels, electric vehicles, and electronics. It is expected that this year, industrial silver consumption will exceed 700 million ounces, a record figure that adds additional pressure to the market.
“About 70% of silver is mined as a byproduct of copper, zinc, or lead production. This makes the industry less flexible in response to price spikes,” the report states.
Market Shortage and Increased Investment
Despite rising demand, the supply of silver remains limited. Forecasts suggest that global production will reach 844 million ounces by 2025, while demand will exceed supply by more than 100 million ounces. Thus, the market will face a shortage for the fifth consecutive year.
The popularity of silver-backed exchange-traded products (ETPs) is also rapidly increasing. In the first half of 2025, their holdings rose by 95 million ounces, reaching 1.13 billion. Investors from India, where demand has increased by 7% despite a decrease in imports, and in Europe, where the market is gradually recovering, show particularly high interest in silver.
Since the beginning of the year, the price of silver has risen from $29 to nearly $47 per ounce, representing over a 55% increase—this figure outpaces the performance of gold. Analysts predict that in the coming months, the price could reach $50 and even higher, provided the current balance between strong industrial demand, investment flows, and limited supply is maintained.