Silver Forecast & Price Predictions Q1 2025: Continued Supply Deficit Supporting Higher Prices

Silver spot prices Silver spot prices have outperformed gold in 2024, rising almost 40% in the first half of the year, which is expected to support higher prices throughout the year. This trend is driven by geopolitical risks, U.S. monetary policy and a surge in global industrial demand for silver to a new record high, particularly in green economy applications and the solar industry, according to recent forecasts.

That was driven by rising demand from "green economy applications," including the solar industry, which uses the metal in photovoltaics, or the conversion of light into electricity.

Overall global demand for silver "massively exceeded" supply last year, with that deficit expected to extend into a fourth consecutive year in 2024, according to the Silver Insitute's World Silver Survey.

Silver Forecast & Price Prediction – Summary   

• Silver price forecast Q1 2025: A longer-term bullish trend, combined with the short-term momentum makes a compelling, technical, case for higher prices in the coming weeks. Silver is forecasted to test the 2024 highs during Q1, according to the latest Silver price analysis and expert predictions.  
• Silver price prediction 2025: Silver prices are forecasted to remain elevated in 2025, as overall global demand for silver “massively exceeded” supply last year, with that deficit expected to extend into a fourth consecutive year. Global experts predict silver may reach as high as US$40 to US$48 per ounce in 2025, driven by ongoing geopolitical issues and significant economic developments.   
• Silver price prediction for the next 5 years and beyond: Silver rate has been heavily influenced by weak industrial production and a lack of investor interest globally. However, if the continued focus on the energy transition is accompanied by stronger global growth, silver prices should push above the $50 mark.       

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Silver Forecast 2025 - Fundamental Outlook: Continuing a significant supply deficit into 2025

Silver’s outlook in the coming few months depends heavily upon two factors: 

Investors are keeping an eye on the rate and pace of the US Federal Reserve and other central banks’ interest rate hikes in the coming months, due to how they are likely to affect precious metals and other commodities. 

The progress of the Middle East and Russian conflicts is also a key factor for metal prices, as currently, silver is also seeing some safe-haven demand, as the crisis rages on. This trend is expected to persist due to anticipated slowing global economic growth in 2025, as well as potential mild recessions.

It is important to understand that Silver serves two primary functions. It’s a precious metal with a monetary role and an industrial metal with numerous and growing applications. It’s also in jewelry and silverware and other objects, of course, but predicting the price comes mostly from these two functions… 

When assessing the state of the silver market, analysts focus on for key areas: mine supply, traditional industrial demand, investment demand and green demand.

Silver demand heads for a fresh record high

According to recent analyses, the global silver market is expected to remain in a significant deficit in 2025, silver has outperformed gold in terms of gains.  

The World Silver Survey, which was issued on mid-April, indicates that the worldwide industrial demand for silver is forecasted to grow to a new record high this year, contributing to the shortage.

The latest World Silver Survey indicates that industrial demand for silver is projected to reach 710 million ounces. The solar industry, which employs the metal in photovoltaics, or the conversion of light into power, as well as other "green economy applications," backed that.  

According to the report, the demand for silver "massively exceeded" supply globally last year, and in 2024 it is predicted to continue for a fourth year in a row.

Source: Mining.com

According to Metals Focus, the silver-market deficit in 2025 remains substantial. That is the second highest on record, with 2022’s deficit of 263.5 million ounces marking a record high.

Silver outpaces gold’s rise

Given the rising silver prices throughout 2025, analysts from the Silver Institute and other financial institutions anticipate further price gains, supported by continued industrial demand and supply constraints. 

Source: Naga WebTrader (TradingView Charts)

Still, silver has managed to outpace gold’s rise year to date, with silver up around 12.2% and gold up around 10%. according to the latest gold forecast and price predictions.

According to the Silver Institute poll, there is a "traditional view that silver will outperform gold in a bull market, but so far this has been muted." It also stated that since 2023, silver prices have encountered firm resistance around $25.

It said that while silver has "not enjoyed to anywhere near the same extent," gold has profited from "broad safe-haven buying and reserve/portfolio diversification among central banks and investors with a longer-term horizon."  

The survey also highlighted the positive impact of China’s economic recovery in 2025 on the local economy, significantly enhancing base metal pricing and increasing demand for silver.

Supply deficit and investor interest

After a 28% drop in physical investment to a three-year low, the global silver supply gap shrank by 30% in the previous year. For the first time since 2018, silver mine production increases only modestly and does not keep pace with the rising industrial and investment demand.

According to a recent Silver Institute poll, industrial demand for silver is forecasted to grow by 3% in 2025, surpassing 700 million ounces for the first time, while the silver supply gap continues to remain substantial.

According to the report, investor interest in silver increased in the first quarter of 2025, driven by expectations of a rate-cutting cycle as reiterated by the US Federal Reserve., alongside improving demand in Europe and North America.

Source: PV-Magazine
 

According to the Silver Institute, the Federal Reserve is expected to adopt a broadly dovish stance in 2025, implementing three policy rate cuts of 25 basis points throughout the year, assuming continued declines in inflation. This dovish monetary policy is anticipated to further support investment in precious metals like silver.

The report advised that investing in precious metals, particularly silver, should be encouraged in the second half of 2025 due to the anticipated decline in yields, especially in real terms.

A high gold-to-silver ratio will also "attract some investors who view silver as undervalued over the long term, perhaps also as its strong fundamentals gain attention," according to the silver outlook for 2025, despite the recent decline.
However, the extent of silver's recovery "as China’s economic recovery continues to support silver demand," the report said.

Investment Demand  TD Securities sees solid potential for silver in 2025 as the Federal Reserve starts to cut rates as recession conditions begin to bite. They forecast silver will reach $35-$40/oz in 2025. Despite the near-term challenges, the firm forecast silver's long-term potential remains bullish. They added that there isn't enough mine supply for silver to meet the long-term demand trends.

Industrial Demand  According to the BaC, India has been the bright spot in the world market for silver demand in 2025, buying record amounts of the precious metal in 2025. This showed, among other things, pent-up demand, particularly for jewellery after COVID, which was then made worse by restocking along the whole supply chain. Nevertheless, imports have recently resumed their longer-term ranges.

Mine supply Peter Krauth of Silver Stock Investor said that issues in top producers Mexico and Peru will continue to constrain output in 2025: "The world's two largest silver-supplying countries are seeing multi-year lows in supply, and the prospects for new silver mines to come on stream — to be discovered, approved, financed, built and come onstream — we're talking 10 to 15 years these days".

Green Demand In their latest silver forecast 2025, Oanda’s analysts predict that the silver market is expected to remain in a significant deficit in 2025, continuing a trend of supply shortages that began in 2021 as mining production cannot keep up with demand. The solar industry continues to drive surging demand for silver, particularly in green economy applications like photovoltaics (solar panels).

How to Trade and Invest in Silver  

Technical Silver Price Forecast Q1 2025 

Silver’s long-term technical setup shows a bullish trajectory, with the metal consolidating above key support levels after breaking a decade-long resistance at $30 in 2024. 

The weekly chart reveals an ascending channel pattern, with $28–$30 now acting as a critical support zone. Institutional forecasts, such as Monex’s projection of a rally toward $35 and InvestingHaven’s $48–$50 target, align with the sustained bullish momentum. 

The gold/silver ratio (~89:1) remains elevated compared to historical averages, suggesting silver may outperform gold as monetary policy shifts. 

A decisive close above the 2024 peak of $34.70 would confirm the next leg higher, while breaches below $28.65 (200-day EMA) risk a retracement to $25–$27.

In the short term, silver faces resistance near $32.65–$33, a three-month high tested multiple times in February 2025. The daily chart shows a bullish pennant formation after Q4 2024’s 40% surge, but overbought signals (RSI at 56, Stochastic at 72) suggest consolidation is likely. Immediate support lies at $31.65–$31.18 (50-day EMA), with a breakdown potentially triggering a pullback to $30.60–$29.50. Conversely, a breakout above $33 could accelerate gains toward $35.25, a level last seen in 2011.

Critical technical levels include:

Resistance: $32.65 (Feb 7 high) → $33 (psychological) → $34.70 (2024 peak)

Support: $31.18 (50-day SMA) → $30 (key pivot) → $28.65 (200-day EMA)

The Stochastic indicator (72) and RSI (56) indicate bullish momentum remains intact but vulnerable to profit-taking near resistance. A sustained hold above $31.50–$31.60 support keeps the uptrend valid, while a drop below $30 risks invalidating the bullish structure.

Silver Forecast and Price Predictions 2025

The Silver Institute’s 2025 report confirms silver remains in a fifth consecutive year of structural deficit, with prices supported by record industrial demand and renewed safe-haven buying amid Trump’s tariff policies and geopolitical tensions. They forecast that global silver demand will reach 1.2 billion ounces in 2025, the second-highest level recorded.

Citigroup maintains a $40/oz silver price target for 2025, citing persistent supply deficits and accelerating industrial consumption in solar/EV sectors18, with imminent support seen from buyers eyeing value in the metal after its sharpest price slide in a month (May) since February. They predicted silver would rally in anticipation of the fall in U.S. interest rates and real yields that will likely accompany an anticipated rollover in U.S. growth in 2025. This should weigh on the dollar, with a price target of $40 for silver in 2025 driven by robust industrial demand and monetary movements.

Commerzbank revised its 2025 outlook to $33/oz by year-end, noting reduced ETF outflows and stronger-than-expected photovoltaic demand. They note that adverse factors such as high-interest rates and weaker investment demand will fade in 2025 and that strong industrial demand will boost prices.

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The World Bank’s 2025 metals index shows silver prices rising 7% YTD, outperforming base metals due to tight physical markets and tariff-driven inventory, following a decline of over 20% in 2023. In line with this, silver prices were forecast to decline by 4% in 2024, which looks impossible to happen after a 40% advance in the first half of the year.

Bank of America’s 2025 analysis highlights silver’s critical role in AI infrastructure, forecasting 18% demand growth from chipmakers and data centers, and could and could also get a boost from a potential rebound in industrial demand.

InvestingHaven.com updated its silver forecast and price prediction: "The price of silver will test former all-time highs in 2025, reaching $49". They predict silver could reach $77 before 2028 due to strong industrial demand and a bullish macroeconomic environment.

JP Morgan’s 2025 outlook projects silver reaching $38/oz by Q4, driven by Fed rate cuts and a falling gold/silver ratio to 75:1839. The bank is forecasting silver to break the $30 mark any time soon, driven by the Federal Reserve cutting interest rates and falling US yields.

ANZ Research’s Daniel Hynes and Soni Kumari said that Silver will largely follow gold, with strong industrial and investment demand pushing prices above USD31/oz by the end of 2025, supported by a widening market deficit and robust demand growth.

While analysts are typically cautious in issuing long-term forecasts for commodities, algorithm-based forecasting services regularly provide price outlooks for more extended periods.

According to Trading Economics global macro models and analysts' expectations, “silver is forecasted to trade at $32.09 per troy ounce by the end of this quarter.” The website forecasts silver to trade at $34.64 in 12 months’ time, or by February 2026.

Gov Capital’s February 2025 algorithmic forecast projects silver hitting $40 by December, with machine learning models identifying $32.64 as critical resistance. The platform sees silver rising to $40 by the end of December 2025, $58 by the end of 2026, and $122 during 2029. This is one of the most bullish Silver price predictions for the next 5 years.

Wallet Investor’s silver price forecast for 2024 was neutral. The website saw the precious metal closing in 2024 at the $27 mark. The platform’s silver price forecast for 2025 saw silver rising to $40 by December 2025.

In his book, “The Great Silver Bull,” Peter Krauth derived a valuation of $300 silver through technical analysis. Krauth has a model that forecasts that gold’s price will rise to $5,000 by 2030, which would drag silver’s price up to $300. This is due to gold’s use as an inflation hedge.

“My thesis is that if you look at what’s happening with inflation, and if you look at how other assets are hurting,” he said.

Here are some updated 2025 Silver forecasts we have gathered from numerous analysts both inside and outside of the silver industry.

Avi Gilburt “Long-term, I'm looking for silver to hit $50, but that might take a few years. For 2025, I expect prices to remain strong due to industrial demand and supply constraints”.

David Morgan David Morgan “Silver tends to outperform 3:1 in bull markets. For 2025, I anticipate a steady climb toward $40 as industrial demand remains robust”.

Randy Smallwood Randy Smallwood Gold will shoot up first and then you will see silver take off rapidly. A $40 mark for silver is likely in 2025 as gold stabilizes above $2,000.

You can see that while many are moderate to strongly bullish, there is some disparity among the silver price predictions for 2025.
When considering silver price predictions, it’s important to remember that high market volatility makes it difficult to give long-term estimates. 

As such, analysts now highlight industrial demand and geopolitical factors as key drivers for 2025 prices. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose. 

Leading indicators supporting the silver forecast & price predictions

Experts forecast silver to move higher in the second half of 2025 due to the ongoing trend of yields and sustained supply deficits. Silver and Yields are inversely correlated. The bullish silver price forecast 2025 is supported by silver’s 4 leading indicators:

• The price of gold (positively correlated to silver).
• The Euro (inversely correlated to the USD).
• Inflation expectations (positively correlated to silver).
• The futures market positioning (CoT).

In this section, we explain how experts derive their bullish silver forecast.  

Gold Price & Gold/Silver Ratio 

Gold is forecasted to continue its upward trajectory in 2025. We gave much more detail about the expected path of gold in 2025 in our gold forecast and price prediction. 

The gold/silver ratio is simply the price of gold divided by the price of silver. Since both are considered monetary metals, they usually move together—which can give us clues when the ratio gets stretched in one direction or the other. 

The higher the ratio the more undervalued silver tends to be relative to gold; the lower the ratio the more overvalued silver is to gold. 

And when readings get stretched, they tend to correct themselves, as this chart shows… notice the ratio roughly corresponds to the highs and lows in precious metals cycles. 

Source: GoldSilver.com

The historical evidence suggests that the gold-to-silver ratio entering the 80 to 100x range may act as a signal for a significant rally in the price of silver. At this very point in time, the gold-to-silver ratio chart has been above 85x since early 2025.

The gold-to-silver ratio is not a timing indicator, it is a stretch indicator. It suggests that silver is extremely undervalued relative to gold, it suggests that it’s a matter of time until spot silver starts reacting to the upside or gold to the downside. 

GoldSilver.com also expects to see the gold/silver ratio drop below 20. “The day that people rush back to gold and silver as monetary assets is the day you’ll see the ratio revert back to its 1980 low of 14, giving you enormous leverage to gold.” 

InvestingHeaven.com expects a gold/silver ratio of 40 points may be hit mid-2025. For this target to be hit, silver must double with gold being equal.

The gold/silver ratio suggests the silver price is likely to rise in 2025 according to market watchers and supports the bullish silver price predictions for the next 5 years.

Gold Forecast & Price Predictions 2025, 2026, 2030 

Interest Rates Expectations

Silver is both an investment and is consumed in the manufacture of jewelry, electronics, and electric vehicles, which have been gaining traction amid the global green energy transition. Silver price confirmed the bullish breakout pattern.

Supported by higher-than-expected US inflation data, it puts back into the discussion about when the Federal Reserve would begin to ease monetary policy. As a yieldless asset, Silver tends to rise with lower interest rates.

When will Interest Rates Go Down

Eur/Usd 

Precious metals need a rising Euro (falling or flat USD) in order to shine. EUR/USD is expected to remain range-bound in early 2025, with key levels influenced by U.S. inflation data and ECB monetary policy. We gave much more detail about the expected path of EurUsd in our Euro to Dollar forecast for 2025. 

According to FX strategists, EUR/USD is fairly valued down at these lowly levels. In other words, there is not the kind of extreme undervaluation that has supported EUR/USD at these levels in the past. This really does build the case that if there is to be a EUR/USD rally, it will have to be driven by the dollar leg. Away from the Fed easing story there is also the risk of US fiscal deterioration and de-dollarisation – perhaps both slow-burn stories.  

The EUR/USD is currently consolidating around 1.0300, with a potential rebound towards resistance at 1.0530 if bullish momentum persists.

EurUsd Forecast & Price Predictions 2025

Pound forecast & Price Predictions 2025

Turkish Lira forecast & Price Predictions 2025

USD to INR Forecast 2025

AED to INR Forecast 2025

SAR to INR Forecast 2025

Futures market (CoT) 

This is another leading indicator for silver. The way to think of this leading indicator for silver is a stretch indicator: 

When net positions in the futures market of commercials and non-commercials are stretched it indicates that the price is going to take a turn. 

This is not a timing indicator; we need the silver price chart to determine the timing of a turning point. 

Source: Investmacro.com

The silver CoT report indicates a bullish sentiment for February 2025, with prices testing resistance near $32.50 and targeting $35 in the near term. Silver prices are expected to remain supported by industrial demand and geopolitical uncertainties, with potential for further gains if resistance at $32.50 is breached.

Ted Butler is an expert in reading the CoT report in silver.

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Silver Price History 

The silver markets have climbed from the $12 per ounce lows reached at the start of the Covid-19 pandemic, as investors have bought physical precious metals and financial instruments as safe-haven assets during ongoing economic uncertainty. 

The silver price reached a $28 high in August 2020 and ended the year around the $22 mark. 

The price then jumped to an eight-year high in February 2021, briefly touching the $30 per ounce psychological level, as the market attracted the attention of retail investors. 

In addition to investor sentiment, the silver price trend has found support from its growing use in industrial settings, which account for roughly half the metal’s annual demand. 

Physical silver demand climbed to a record high in 2021, led by an all-time high in industrial applications – silver is the best conductor of electricity, so is often used in high-end applications. 

The silver spot price had fallen from $24 to $23 per ounce since the start of the year, as central banks combatted inflation by rapidly raising interest rates. Higher interest rates tend to be bearish for precious metals, as investors opt for interest-bearing savings accounts and other assets that generate guaranteed returns. 

Silver traded up from $22.30 per ounce in late January to $26.90 per ounce in early March, a peak so far this year, as the market responded to the Russian invasion of Ukraine. But while the market traded between $24 to $26 until mid-April, it began to sell off sharply later in the month as the dollar strengthened. 

The price bounced back to $21.867 in the following two days but then went on the decline, closely following the trajectory of the gold price. 

The metal attempted to rebound in late July, trading above the $20 mark for several weeks, before shedding close to $2 from its value in 10 days on the back of further interest rate hike expectations – in the current climate, the Fed’s pledge to curb inflation is leading investors to favour the dollar instead of non-interest-bearing bullion assets. 

November saw the Fed make its fourth consecutive 75bps rate hike, taking its short-term borrowing rate to a target range of 3.75%-4% – the highest level since January 2008 – as it continues its mission to return the US economy to 2% inflation. 

The precious metal saw an outstanding few weeks towards the end of 2022, with a weekly gain of about 4.7% and a monthly gain of about 14.4%. This has largely been due to speculation about China loosening its current zero-Covid policy, even though official statements have denied this so far. 

The continuous futures contract for silver ended 2022 at $23.97 per ounce, up 3.7%.  

The price advanced up to $26 in the first half of 2023 amid geopolitical risks, before pulling back to the $23 levels

Silver prices and precious metals in general have been weighed by elevated real yields amid the growing view that interest rates will remain higher for longer given stubbornly high inflation. Rising nominal interest rates coupled with easing price pressures/inflation expectations have pushed up real rates, raising the opportunity cost of holding the zero-yielding yellow metal. 

History of Silver 

Evidence of the first silver mines dates to 3000 B.C. in Anatolia, a site in modern-day Turkey. Most of the silver mining in that part of the world shifted east to Greece by 1200 B.C., as that civilization expanded. In 100 A.D., Spanish silver mines fed the Roman Empire's economy. 

Silver's popularity increased in the years 1000 to 1500, thanks to improved technology, more mines, and better production techniques. The quest for silver and other precious metals gave rise to Spanish fleets that sailed all over the world, seeking wealth and new lands to conquer. It was a vital part of the mercantile system. 

Silver production in the United States peaked in the 1870s with the Comstock Lode in Nevada, and by the end of the 19th century, humans produced more than 120 million troy ounces every year. One of the most iconic ways humans used silver was as a form of currency. 

In the early 1960s, supplies of silver in the United States dwindled to all-time lows. Therefore, the U.S. government decided to stop using silver in its coins after 1964. Any American dimes, quarters, half dollars, or dollar coins with a date of 1964 or earlier contain 90% silver. If the price of silver is $20 per ounce, these silver coins are worth approximately 14 times their face value in the precious metal content alone. A silver dime is worth $1.40, whereas a silver dollar is worth $14 at a $20-per-ounce price. 

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Sources:

• https://www.silverinstitute.org/wp-content/uploads/2024/04/World-Silver-Survey-2024.pdf 
• https://www.jpmorgan.com/insights/global-research/outlook/market-outlook   
• https://investinghaven.com/forecasts/silver-price-forecast-2024/