Last week, we focused on the logic behind the rise of $SPDR Gold Shares(GLD)$ .This week,we continue to cover opportunities intheprecious metals sector.Today’s focus is on $Silver - main 2505(SImain)$ concept.
Silver is A Bright Spot in 2025's Precious Metals Market.
1. Silver Surges Ahead of Gold
💰 With the US dollar and Treasury bonds under pressure, silver stocks and ETFs are surging as safe-haven assets!
5-Day Performance: Over the past five trading days, silver stocks have seen across-the-board gains, outperforming the gold sector and ranking just behind the precious metals mining sector (which we will continue to monitor for potential opportunities).
Data from Tiger Trade, Data as of 14th April 2025.
Year-to-Date (YTD) Gains: Silver stocks have also shown impressive YTD gains. $Fortuna Silver Mines(FSM)$ has surged over 52% in 2025, $Pan American Silver(PAAS)$ has risen over 34%, and $Silvercorp Metals Inc(SVM)$ has climbed 28%. Other notable performers include $First Majestic Silver(AG)$ , $Hecla Mining(HL)$ , $MAG Silver(MAG)$ , and $Endeavour Silver(EXK)$ , all with YTD gains exceeding 10%.
Data from Tiger Trade, Data as of 14th April 2025.
You may also have interest in some silver ETFs:
Here are the investment keywords for each Silver ETF translated into English:
$Aberdeen Standard Physical Silver Shares ETF(SIVR)$ : Physical silver ETF, holds 469,470 bars (approximately 45.7 million ounces) of silver.
$iShares Silver Trust(SLV)$ : Asset management scale exceeds $10 billion, holds over 459 million ounces of silver, good liquidity, offers both call and put options trading.
$Sprott Physical Silver Trust(PSLV)$ : Closed-end fund, holds 171 million ounces of physical silver bars.
$Global X Silver Miners ETF(SIL)$ : Silver mining stocks, invests in 34 stocks (62% from Canada), with an asset management scale of approximately $9.20 billion.
$Amplify Junior Silver Miners ETF(SILJ)$ : Junior silver miners and explorers, higher risk, invests in 61 global stocks with a higher proportion of Canadian stocks.
$ProShares Ultra Silver(AGQ)$ : Leveraged (2x) ETF, suitable for short-term trading.
2. Rising Logic and Price Outlook for Silver
Silver has performed strongly this year, similar to gold, mainly due to macroeconomic influences. However, silver has its unique advantages, such as its widespread use in photovoltaics, semiconductors, and the automotive industry, with supply gaps still below demand. Moreover, the gold-silver ratio has recently remained above 80 and even exceeded 100, indicating that silver is undervalued. Specifically:
Macroeconomic and Policy Factors
US Dollar and Treasury Bonds Under Pressure: The dollar and silver/gold prices usually move in opposite directions. Since the beginning of 2025, the US dollar index has fallen nearly 10%. When the global trade environment deteriorates and the US economic recession expectations increase, investors are more willing to buy gold and silver as safe-haven assets.
Fed Rate Cut Expectations: The market expects the Fed to continue cutting interest rates in 2025, although the pace may slow. The decline in interest rates will make silver more attractive.
Strong Industrial Demand
Photovoltaic and Electronics Industry Demand: Silver is widely used in photovoltaics and semiconductors. The global photovoltaic industry is growing rapidly, and the electronics industry is also recovering, leading to a significant increase in industrial demand for silver. For example, global consumer electronics market revenue is expected to exceed $1 trillion in 2025, a significant increase from 2023. Global semiconductor production is expected to grow by 6.4% in 2024, and the adoption of 5G networks has also increased demand for silver.
Automotive Industry Push: Silver is used in automotive electronics and computer components, and increased demand from the automotive industry has also driven silver consumption.
Supply and Demand Gap Widening
Slow Supply Growth: Although silver mine production is expected to grow steadily from 2024 to 2025, overall supply growth cannot keep up with demand growth. Moreover, silver is mostly a byproduct of other base metal mining, which limits supply growth.
Continuous Demand Growth: According to the Silver Institute, the global silver supply and demand gap is expected to widen further in 2025 and 2026. HSBC estimates that the silver supply and demand deficit will expand to 200 million ounces in 2024 and remain at 197 million ounces in 2025. This supply-demand imbalance will strongly support silver prices.
Silver Undervalued Relative to Gold
Gold-Silver Ratio: As of the latest report, the gold-silver ratio stands at 99.8. The ratio has remained above 80 for several weeks and has exceeded 100.
Investment Strategy: A high ratio (above 80) indicates that silver is undervalued, making it a good time to buy silver, as it is likely to catch up with gold in the future. A low ratio (below 50) would indicate that silver is overvalued, making it a good time to sell silver. When the gold-silver ratio exceeds 100:1, silver typically outperforms gold significantly within 6-18 months.
Soure: https://www.chards.co.uk/
3. Summary
Silver is performing strongly in 2025, mainly due to strong industrial demand, widening supply and demand gaps, and support from macroeconomic and policy factors. In terms of price, silver also has an upward momentum. Currently, silver futures are trading above $32 per ounce, and most investment banks and analysts are optimistic about silver prices, expecting them to reach $35-$40 per ounce in 2025.
UBS: Expects silver prices to rebound to between $36 and $38 per ounce in 2025, mainly driven by declining US real yields and strengthening global industrial production.
TD Securities: Expects silver prices to reach $33.25 per ounce in Q1 2025, $33 in Q2, $34 in Q3, and peak at $36 in Q4.
Morgan Stanley: Considering the potential supply deficit in the silver market, expects silver prices to rise to $38 per ounce in 2025.
Citigroup: Believes that silver’s outlook is the strongest in decades, expecting silver prices to reach $40 per ounce in 2025.
InvestingHaven: Predicts that silver prices could reach $50 per ounce in 2025.
Overall, silver is performing strongly in 2025 and is worth the attention of investors!
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