Silver prices have gone through the roof this year, including a massive 75% increase so far. They have found a new high at $51 per troy ounce, crossing the $50 barrier for the first time since 1980. This dramatic increase is indicative of a bigger trend, where investors are flocking to safer assets due to continued economic uncertainty. The iShares Silver Trust ETF has another conditional medal this year, soaring nearly 68% in 2023.
The effects of silver’s ongoing industrial boom are hitting the silver market hard, shooting up the price of silver. Driving this recent upswing is a longstanding structural supply deficit in the silver market. For five years in a row now, mining production has failed to keep pace with demand, furthering the supply shortfall. This unprecedented situation has created an undeniable positive demand for silver. Investors are starting to see it as a cheaper gold-like substitute for safe-haven flows.
Michael DiRienzo, executive director of the Silver Institute, pointed to how today’s economic climate is creating a paradigm shift in investor behavior. He noted, “There’s just a lot of concern about the global economy, and when that happens, people turn to hard assets like silver.” This sentiment aligns with observations from Ewa Manthey, who remarked, “Its dual role as an industrial metal and safe-haven asset has amplified the rally, making 2025 a historic year for silver.”
Market analysts believe this safe-haven rally has grown beyond its normal bounds this year, helping drive silver’s huge gains this year. Marina Smirnova, Chief Investment Officer at Sprott Asset Management, emphasized this trend by stating, “Silver’s steady climb is turning into a breakout.”
Previous record silver ETF inflows are being blown out of the water. They’ve reached their highest levels since 2020, demonstrating the fervent investor interest in the metal. Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, noted that “strong and growing demand for silver, combined with a persistent supply deficit, is a recipe for higher prices.”
A rally in silver prices is likely given strong fundamentals, say analysts. Our supply vs demand problem Stagnant U.S. mining output isn’t keeping up with the increasing demand, causing persistent supply deficits. As economic uncertainty grips the world, investors are rushing to silver. This trend underscores the growing silver’s irresistible dual allure as an irreplaceable industrial resource and a financial safe haven, propelling its rising trajectory ever higher.