In today’s investment climate, silver is also attracting attention alongside gold. Many investors have traditionally preferred gold to try their luck, but silver is now showing strong signs of growth as well. Silver prices have hit several historic highs in 2025. For example, according to Deriv, silver prices reached $40.80 per troy ounce, their highest level in 14 years. Similarly, silver surpassed $51.10 in October 2025, marking a nearly 73% increase since January.
These data clearly show that silver is now emerging from a recession and embarking on a strong rally. Silver appears to be cheap even compared to Gurudev – the gold-silver ratio is currently at 88, while its long-term average is only ~60. This suggests that silver prices have historically fallen well below the golden barrier and have significant room for growth. During this same period, the ratio between the US S&P 500 and the commodity index has also reached approximately 17.27, its highest level in decades. Since 2022, the US stock market has seen a sharp rise (71%), while commodity prices have fallen. When stocks are at such high levels, investment often turns to inflation or commodities – this supports metals like silver.
📊 Silver Market Recovery – Emerging from Recession
- 📈 Silver Rally: Silver is emerging from recession and entering a strong rally.
- ⚖️ Gold-Silver Ratio: Current ratio at 88, long-term average ~60, indicating silver is undervalued.
- 💰 Room for Growth: Silver historically fell below golden barrier, suggesting potential price growth.
- 📊 US Market Context: S&P 500 to commodity index ratio ~17.27, highest in decades.
- 🏦 Stock vs Commodity Trend: Since 2022, US stocks up 71%, commodities down; investors turn to metals like silver for protection.
Silver’s rising prices and potential gains in the coming years are being driven by several factors. First, silver is also an industrial metal, and its demand is rapidly increasing in the renewable energy and technology sectors. Silver’s uses include solar panels, electric vehicles, and AI-based electronics. The global green energy revolution will increase silver consumption, further boosting its industrial demand. Silver plays an essential role in solar panel and battery technology, so the expansion of these sectors will have a positive impact on silver prices.
Second, monetary policies appear to be favoring silver. The US dollar has weakened this year, and the Federal Reserve is expected to cut interest rates. When interest rates are low, the opportunity cost of investing in interest-bearing assets like bonds or bank deposits versus non-yielding assets like silver decreases. Therefore, investors are increasingly investing in both gold and silver.
Third, silver is being supported by low supply and increased demand. Over the long term, the mined silver supply is decreasing, while demand has increased. According to data from the Silver Institute, there was a supply deficit of 184.3 million ounces in 2024. A global supply deficit of up to 187.6 million ounces is expected in 2025. This supply shortage will put pressure on silver prices.
In addition, large investors and central banks are also showing interest in silver. Central banks like Russia recently announced plans to purchase $535 million worth of silver over the next three years (according to GoldSilver analysts). Such announcements indicate that institutional demand for silver is also increasing, supporting the price.
🏭 Silver Supply & Institutional Demand – Price Support Factors
- ⚖️ Low Supply: Mined silver supply is decreasing over the long term.
- 📉 Supply Deficit: Silver supply deficit was 184.3 million oz in 2024; expected 187.6 million oz in 2025.
- 💰 Price Pressure: Low supply combined with increasing demand supports silver prices.
- 🏦 Institutional Interest: Large investors and central banks (e.g., Russia) are planning significant silver purchases.
- 🌍 Growing Demand: Institutional interest and global demand increase price support for silver.
However, it’s important to be aware of some risks before investing in silver. The biggest risk is the rebound of the US dollar and a slowdown in global demand. If the dollar strengthens again or demand slows in major economies like China, silver’s gains could slow. This year’s rally has seen a gain of approximately 30%, so technically, overbought conditions could develop for a short period. Nevertheless, as long as monetary easing and industrial demand persist, the long-term path for silver prices appears clear.
Overall, silver is proving to be an attractive option for investors in 2025. Gold remains a safe investment, but silver has a wide range of demand and is currently affordable from a price perspective. If the global economy experiences monetary easing and green energy rapidly expands, 2025 could prove to be a significant year for silver. Despite these insights, please consult your financial advisor before investing.
Disclaimer: This article is for general information only and should not be construed as investment advice.
Disclaimer: Consult your financial advisor before making any investment decisions.
