Silver Price Forecast: When Will Silver Rise?
The comments below are an edited and abridged synopsis of an article by Melissa Pistilli, Investing News Network
Silver prices have surged past US$30 per ounce, prompting renewed investor interest in whether the metal will continue to rise. Silver is known for its volatility, experiencing fluctuations between $22.42 and $34.72 over the past year. As a safe-haven asset, silver has benefited from global uncertainty, central bank demand, and the prospect of lower interest rates.
Silver’s Price Performance Over the Past Year
Silver has generally trended upward since early 2024, despite periods of decline. It began the year at $22.08, then gained momentum in Q2, peaking at $32.33 in May. The price dipped in Q3, mirroring weakness in industrial metals, but rebounded above $30 in September. October saw silver climb to $34.72, its highest level in 12 years, driven by geopolitical tensions, inflation fears, and expectations of US Federal Reserve interest rate cuts. However, by December, profit-taking and shifting investor sentiment pushed silver back below $30.
So far in 2025, silver has risen nearly 10%, largely due to global instability and persistent inflation.
Key Factors Driving Silver Prices
The silver price is influenced by both macroeconomic conditions and industrial demand. The metal benefits from uncertainty surrounding US economic policy, particularly under President Donald Trump, whose tariff policies could further drive demand for precious metals. Additionally, the Federal Reserve’s cautious stance on rate cuts affects investor sentiment.
On the industrial side, silver demand remains strong, particularly in solar energy, electric vehicles, and electronics. The Silver Institute projects a fifth consecutive supply deficit in 2025, with industrial use reaching record highs and total demand exceeding 1.2 billion ounces. While silver mine production is expected to grow, it will not be sufficient to offset demand.
Expert Opinions on Silver’s Future
Industry analysts remain optimistic about silver’s trajectory. Some foresee silver reaching $35 to $40 in the near term, with long-term potential for $50 per ounce. Experts highlight silver’s tendency to lag behind gold before surging past it, suggesting further gains could be ahead.
However, risks remain. A potential recession or broader market selloff could temporarily curb silver’s gains. Investors should consider silver’s cyclical nature and look for opportunities to buy during price dips.
Conclusion
Silver’s recent rally has sparked renewed debate about its future. While the metal faces resistance at $30, strong industrial demand, ongoing geopolitical tensions, and Federal Reserve policy could provide continued support. Investors should closely monitor these factors to determine the best entry and exit points.
