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In 2024, silver prices experienced significant growth, reaching levels unseen since 2012. The white metal peaked in October, surpassing $34 per ounce, driven by a combination of industrial demand and safe-haven investment amid geopolitical tensions. However, following Donald Trump’s victory in the U.S. presidential election, increased bond yields and a strengthening U.S. dollar applied downward pressure on silver and gold prices.
As we approach 2025, market analysts offer varied forecasts for silver prices:
- InvestingHaven projects that silver will test its previous all-time highs, potentially reaching between $48 and $50 in 2025.
- FX Empire anticipates robust industrial demand and safe-haven buying could propel silver prices toward $50 per ounce.
- Longforecast.com predicts that silver prices will fluctuate between approximately $31 and $37 throughout 2025.
- CoinPriceForecast.com estimates that silver could reach around $38 by the end of 2025, indicating an 18% increase from current levels.
These projections are influenced by several key factors:
- Supply and Demand Dynamics: The silver market has been in a supply deficit since 2021, with demand consistently outpacing supply. This trend is expected to continue into 2025, potentially supporting higher prices.
- Industrial Demand: Silver’s extensive use in industries such as electronics, solar energy, and automotive sectors contributes significantly to its demand. Advancements in technology and green energy initiatives are likely to further increase industrial consumption.
- Geopolitical and Economic Factors: Political developments, particularly in the U.S., along with global economic conditions, can influence investor behaviour toward safe-haven assets like silver. Policies enacted by the Trump administration may impact market sentiment and, consequently, silver prices.
It’s important to note that while these forecasts provide insight into potential trends, the silver market is subject to volatility influenced by various unpredictable factors. Investors should consider these projections as part of a broader analysis and remain attentive to ongoing market developments.
