Silver Shortage Looms: Time To Invest in Silver 2025?
Over the past year, gold has dominated attention among investors in 2025, with gold prices skyrocketing amidst uncertainty around Trump’s tariffs and the US-China trade war. But silver, often seen as gold’s little sibling, is starting to capture serious investor attention in 2025. With industrial demand rising and a growing supply shortfall, we believe silver may be approaching a pivotal breakout moment. Let’s talk silver and if 2025 is the year to invest in silver.
Why Silver Deserves Your Attention
Unlike gold, silver has significant industrial utility. It’s used extensively in solar panels, electronics, and electric vehicles. Of the roughly 1,020 million troy ounces of annual silver demand:
Electronics: ~300 million oz
Solar Panels: ~190 million oz
Automotive, medical, and chemical applications: ~86 million oz
Jewellery: ~180 million oz
Other (investment, silverware, photography): remainder
In contrast, annual supply, primarily from mining, sits at just around 830 million troy ounces. That leaves a supply deficit of nearly 200 million ounces annually. And this gap is expected to widen.
Demand Forecasts: A 15–20% Surge in Sight
In the next 1.5 to 2 years, demand from core industrial users is projected to rise sharply:
Solar panel silver demand: +15%
EV (electric vehicles): +15%
Electronics: modest growth
At the same time, silver mining output is difficult to scale quickly, with analysts expecting only a 2–3% annual supply increase.
If you are interested in our analysis of the implications of the 2025 Trade War and what it means for investors, we recommend you also read our article: Trade War Tensions Escalate: What Investors Need to Know
Source: The Silver Institute
Technical Picture: A Breakout or Breakdown?
From a technical analysis perspective, silver is testing a key long-term resistance level near $36.36 per troy ounce. The RSI (Relative Strength Index) is slightly above 70, indicating strong momentum, but also potential overheating in the short term.
Meanwhile, the MACD (Moving Average Convergence Divergence) is flattening, possibly hinting at a brief consolidation before the next move.
The next few weeks may determine whether we break out to higher levels or retrace temporarily. But fundamentally, the long-term setup remains bullish.
The Gold-Silver Ratio: Silver Looks Cheap
The Gold-to-Silver Ratio, which indicates how many ounces of silver are needed to buy one ounce of gold, currently sits around 80. Historically:
Ancient norms: 10–20
20th-century average: 40–60
2020 COVID peaks: over 100
A lower ratio often implies silver is outperforming. At 80, many analysts see silver as undervalued relative to gold, which is currently quite expensive as investors have increased their gold allocation due to gold being a safe haven and a useful in hedging equity positions, which have been particularly volatile due to to fears of the impact of Trump’s tariffs.
If you are interested in investing in precious metals and commodities to hedge your positions, we recommend you also read our analysis Commodities Outlook 2025: Hedging Trump’s Tariff Chaos
How to Invest in Silver
There are several ways investors can gain exposure:
1. ETCs (Exchange Traded Commodities)
For European investors, ETCs like Xetra’s €1-settled silver ETCs are simple and cost-effective.
- Pros: Physically backed, stored in bank vaults (e.g., HSBC), ~0.49% annual cost
- Cons: No leverage
2. Leveraged Products (e.g., XAG/USD Forex Instruments)
For experienced investors, silver can also be traded via forex pairs like XAG/USD or XAG/EUR.
- Pros: Leverage possible (e.g., ~7% margin)
- Cons: Higher risk, overnight financing costs
3. Physical Silver
Coins or bars for those seeking direct ownership, though liquidity and storage can be concerns.
These instruments can be accessed and traded by our clients on our online investment platforms.
Conclusion: Is 2025 The Year to Invest In Silver?
Silver is no longer just an afterthought in the metals space. With demand growing from green energy and tech sectors, and supply lagging behind, investors may want to take a fresh look at this metal. It can serve as a valuable diversifier within a commodities allocation and may offer meaningful upside in a world where resource constraints are becoming more visible.
If you’re unsure how to use silver as a component of your portfolio are unsure how to trade the above-mentioned instruments on our trading platforms, we’re here to help, feel free to contact us. In times like these, a sound strategy is your best defense.
Open an account today to access our trading platforms. Choose from a single account, a joint account with someone else, or a corporate account for your business.
Whether you are new to investing or an experienced trader; we have you covered! Hugo guides you through the platforms and explain all the tools and functionalities.
If you are interested in how you can use commodities to hedge against Trump’s Trade War in 2025, we suggest you see our latest YouTube vlogs below.
If you’d like to further explore precious metals and commodities, and how you can invest in them, feel free to contact us an schedule a visit our office on Marbella’s Golden Mile.
We wish all investors a successful 2025! Trade Saf€.
Kaspar Huijsman
Kaspar is a passionate investor known for his thorough analysis of news and market
dynamics. With over 25 years of experience in the financial world, he never relies on half- truths and always prioritizes knowledge.
“An investment in knowledge pays the best interest.”
— Kaspar Huijsman
The information in this article should not be interpreted as individual investment advice. Although Hugo compiles and maintains these pages from reliable sources, Hugo cannot guarantee that the information is accurate, complete and up-to-date. Any information used from this article without prior verification or advice, is at your own risk. We advise that you only invest in products that fit your knowledge and experience and do not invest in financial instruments where you do not understand the risks.