Silver Gains Ground towards 14-Year Peak
The comments below are an edited and abridged synopsis of an article by Economies.com
Silver Price Outlook 2025: Industrial And Retail Demand Drive Prices toward 14-Year High
The silver price continued its bullish streak on Monday in the European markets, advancing for the fourth consecutive day. The Silver Price Outlook 2025 points to a convergence of favourable factors—including a weakening US dollar, industrial consumption, and investor sentiment—that are pushing silver toward a potential 14-year high.
Silver climbed by 1.0% to $38.55 an ounce, after opening at $38.17 and dipping briefly to $38.10. Friday’s modest 0.1% gain marked the third straight daily advance, supported by a softer US dollar. Despite a minor weekly loss of 0.6% due to profit-taking, silver has gained roughly 7% since the beginning of July and is on track for a third consecutive monthly increase.
The Silver Price Outlook 2025 attributes this momentum primarily to robust industrial and retail demand. Unlike gold, which is often viewed purely as a store of value, silver straddles both industrial utility and monetary demand. This dual nature makes it especially responsive to broader economic trends and policy shifts.
Industrial demand is a key pillar of the current silver rally. The white metal is indispensable in green technologies, including solar panels, electric vehicles, and advanced electronics, thanks to its superior conductivity. Each solar panel contains roughly 20 grams of silver, and forecasts suggest the solar sector alone could consume up to 30% of annual global silver output by 2030. In fact, industrial demand is projected to reach a record 710 million ounces in 2025, further fuelling the Silver Price Outlook 2025.
China’s role in the silver market cannot be overlooked. Recent encouraging economic data from Beijing, combined with a series of stimulus measures, have renewed optimism about China’s recovery. As the world’s largest consumer of metals and commodities, China’s demand resurgence is expected to drive silver withdrawals and boost global consumption in the months ahead.
Retail demand has also spiked, as traders seek to hedge against volatility linked to a shift in global central bank policy toward monetary easing. Silver’s perceived undervaluation relative to gold—which remains near record highs—has attracted investors looking for cost-effective exposure to precious metals. Many view silver as a high-upside asset currently trading below its intrinsic value.
Meanwhile, the US dollar’s weakness is providing further support for silver. The US Dollar Index fell 0.6% on Monday, marking its second day of declines and distancing itself from recent three-week highs. Comments from Federal Reserve officials, particularly Governor Christopher Waller, have hinted at a possible rate cut in July. Waller cited softening labour market data and a limited inflationary impact from tariffs as reasons to act pre-emptively.
President Trump’s criticism of Fed Chair Jerome Powell for hesitating on rate cuts have further complicated the picture, injecting additional uncertainty into the monetary landscape.
Altogether, the Silver Price Outlook 2025 remains optimistic. A mix of industrial growth, retail interest, and currency weakness continues to drive silver higher. With supportive fundamentals in place, silver may be poised to break out to new highs in the coming months.
