Silver hits record ~US$65 per ounce on tight supply and strong demand

Silver Price Surge

Silver prices have surged to record highs, exceeding US$65 per ounce, driven by a combination of strong demand and persistent supply deficits. This spike marks one of the strongest rallies among commodities in 2025. Global surveys indicate the silver market has faced structural deficits for five consecutive years due to constrained mined output, while consumption in renewable energy, electronics, and other industrial sectors continues to grow.

Macro Economic Influences

Macro forces also play a significant role, as expectations of looser monetary policy and continued real-yield compression reduce the opportunity cost of holding non-yielding assets like precious metals. This shift is attracting interest from institutional portfolios seeking diversification and inflation hedges. Silver's dual role as a critical industrial input and a store of value has widened its investor base, with inflows into ETFs and retail interest contributing to upward price pressure.

Future Uncertainties

Analysts warn of elevated volatility in silver prices. Profit-taking episodes and sensitivity to macroeconomic signals, such as interest rate expectations and U.S. jobs data, suggest sharp pullbacks could occur even though long-term structural drivers remain supportive. Continued tight physical markets, industrial adoption, and strategic investor positioning could maintain elevated silver prices, yet the trajectory will be closely tied to broader economic conditions and monetary policy expectations.