Synopsis
A recent report predicts a positive future for silver prices through 2025, fueled by industrial demand, supply constraints, and favorable economic conditions. The report outlines significant growth potential for silver, particularly in the EV and green energy sectors.Key Takeaways
- The year 2025 is expected to be favorable for silver.
- Industrial demand accounts for approximately 60% of silver's total use.
- Silver prices have increased significantly in 2024 and 2025.
- The supply of silver has been in deficit for four years.
- The gold-silver ratio suggests silver is undervalued.
Mumbai, March 6 (NationPress) The year 2025 holds a bright future for silver, driven by a beneficial combination of industrial demand, supply limitations, and technical momentum, according to a recent report released on Thursday.
As per the report by Emkay Wealth Management Limited, the outlook for silver remains optimistic for the next 12 to 18 months.
The firm suggests that both medium-term and long-term factors will propel silver prices higher, influenced by declining US interest rates, geopolitical tensions, and increasing industrial demand, especially from the Electric Vehicle (EV) and green energy sectors.
The long-term prospects for silver continue to be robust due to its rising industrial applications. This precious metal is essential in electronic gadgets, circuit boards, solar panels, and EV batteries.
With the ongoing adoption of EVs and green energy solutions, the industrial demand for silver is anticipated to stay strong.
According to Emkay Wealth Management, nearly 60 percent of silver's overall demand originates from industrial uses.
Recent trends show a significant increase in silver prices. In terms of Indian rupees, prices have escalated by 15 percent in 2024 and have already risen by an additional 11 percent in 2025.
Emkay Wealth Management credits this growth to several factors, including predictions of a decrease in US interest rates, ongoing geopolitical instability, and uncertainties regarding the Trump administration.
These factors render silver and other precious metals an appealing investment choice for the upcoming period.
The supply of silver has been in a deficit for four consecutive years, with demand consistently exceeding production.
In 2024, total silver demand was projected at 1,219 million ounces, while supply reached only 1,004 million ounces.
This persistent supply-demand gap is expected to continue, contributing to a favorable price outlook for the metal, the report indicated.
Silver is currently testing the critical $33 per ounce level, and technical indicators imply potential for further gains.
According to Emkay Wealth Management, silver could rise to price points of $36.60, $38.70, and $39.30 in the forthcoming months.
The firm advises investing in silver funds with a 12 to 18-month investment horizon as a promising strategy.
Another vital technical element supporting silver's bullish outlook is the gold-silver ratio. Currently, the ratio is around 90, suggesting that silver is relatively undervalued compared to gold, the report concluded.
