Mumbai, 24 January 2025 (Commoditiescontrol) – Silver is poised to outperform other precious and base metals in 2025, driven by its dual role as a monetary and industrial metal, according to StoneX Financial's 2025 Annual Metals Outlook. The report identifies silver, alongside copper and tin, as the top metals to watch this year, fueled by strong industrial demand and tightening supply fundamentals.
Demand Surge Amid Tightening Supply
Silver's market dynamics have shifted fundamentally. After running a surplus for over a decade, the market transitioned to a deficit in late 2024, a trend projected to expand further. Industrial demand is expected to drive this shift, with photovoltaic (solar) applications set to absorb 8,491 tons of silver in 2025, marking a significant 16% annual growth rate through 2027, according to Metals Focus.
On the supply side, total silver availability is forecast to remain stable at 31,601 tons in 2025, supported by increased recycling efforts. However, mine production is expected to decline slightly, contributing to the tightening market balance.
Bullish Price Outlook
StoneX projects silver prices to average $32 per ounce in 2025, with a year-end target of $33, representing a 14.1% increase from the 2024 closing price of $29. This follows a robust 22% price rally in 2024, which reinvigorated investor interest.
“Silver’s dual identity as a precious and industrial metal, combined with growing demand from solar energy and AI infrastructure, strengthens its market fundamentals,” said Rhona O’Connell, Head of Market Analysis for EMEA & Asia at StoneX. “The transition to clean energy and advanced technologies will continue to drive silver’s appeal.”
Volatility and Investment Interest
Silver’s historical volatility remains a factor, often amplifying price movements in response to shifts in gold or copper. However, StoneX analysts believe silver is increasingly charting its own course, driven by industrial demand and strategic investment.
“Silver has a history of reacting sharply to market sentiment, yet its long-term prospects in solar and AI infrastructure remain compelling,” the report noted. While silver benefits from its correlation with gold, its growing role in green energy positions it as a standalone investment opportunity.
Geopolitical Risks and Market Sensitivities
The report highlights potential geopolitical risks, including proposed U.S. tariffs on silver imports from Mexico and Canada, which account for 35% of U.S. supply. Although such measures could create short-term market volatility, StoneX anticipates any disruptions would be temporary, given silver’s essential role in industrial applications.
Long-Term Outlook
Silver’s unique position as a hybrid metal ensures its continued prominence in the evolving global economy. As industrial demand intensifies and supply constraints deepen, the metal’s fundamentals are set to attract further investment.
With silver prices expected to rise steadily, StoneX’s forecast reinforces the metal’s resilience and growth potential, making it a key asset to monitor in 2025.
(By Commoditiescontrol Bureau; +91 98201 30172)