Silver is making headlines, and for good reason. It’s not just a precious metal—it’s an essential resource powering industries, protecting portfolios, and driving the green energy revolution. But with demand rapidly outpacing supply, silver’s future looks more valuable than ever.
Silver Demand Skyrockets
For three consecutive years, silver demand has exceeded supply, creating a significant deficit. Here’s what’s fueling the surge:
Industrial Demand: Nearly 60% of silver is used in industries like electronics, solar panels, and electric vehicles. As global green energy efforts ramp up, experts predict its demand will double over the next decade.
Investment Appeal: With economic uncertainty lingering, silver remains a go-to safe-haven asset. Silver is a traditional hedge against inflation and a safeguard against recession. With a lower price point than gold, silver offers an easy entry into precious metals.
Broad Growth: Oxford Economics projects a 42% rise in overall silver demand from 2023 to 2033, spanning industrial uses, jewelry, and silverware.1
Silver and the Green Energy Boom
Silver is a cornerstone of the renewable energy sector:
Solar Power: Silver is essential for solar panel production, which is expected to grow significantly. The International Energy Agency reports that investment in solar manufacturing more than doubled last year, with demand for silver in this sector projected to increase by 170% over the next decade.
Electric Vehicles: Silver-based EV batteries are gaining attention, with the potential to consume an entire year’s worth of global silver production if adopted by just 20% of the EV market.
While U.S. policies on renewable energy may fluctuate, global trends—especially in Europe and China—continue to drive demand for silver in green technologies.2
A Supply Crunch
While silver demand climbs, supply is struggling to keep pace. The numbers paint a clear picture:
In 2023, the global silver deficit hit 184 million ounces.
In 2024, that deficit grew to 215 million ounces—the second-largest shortfall in recorded history.3
Mining hasn’t been able to bridge the gap. Most silver is extracted as a byproduct of mining other metals, and silver-only mines are facing rising operating costs that often outstrip revenues. Recycled silver is needed to make up the difference. Inflation has further squeezed the industry, making it more expensive to maintain current production levels.
Geopolitical Factors
Silver's scarcity is further compounded by geopolitical factors:
Concentrated Production: Much of the world’s silver comes from countries like Russia and Kazakhstan, where production increases are unlikely.
Strategic Reserves: Russia has announced plans to add silver to its reserves as part of a strategy to counter U.S. sanctions. This move could reduce global availability, increasing scarcity and driving prices higher.
With the U.S. importing 80% of its silver, our country is vulnerable to supply disruptions. If other nations follow Russia’s lead, it could accelerate the de-dollarization trend, particularly as BRICS nations explore a new currency backed by precious metals.
The Silver Academy compared it to the 1973 Oil Embargo, with Russia using control of silver to exert geopolitical pressure.
Running Out of Reserves
To meet growing demand, companies have tapped into above-ground silver inventories. But these reserves are running out and could be depleted within the next 12–24 months, leaving no cushion to absorb shortages, and putting upward pressure on prices.4
What Does This Mean to You
Silver offers the rare combination of industrial utility and portfolio protection. It’s a hedge against inflation, a safe-haven during economic turbulence, and a key material for future technologies.
Silver went up 46% in 2024, hitting its highest price since 2012—over $34 an ounce. But this is just the start.
Analysts at UBS see silver testing $40 in the next 12 months, saying "We see silver outperforming gold over 12 months, with the potential for its ratio to test the long-term average of just below 70x."5
Robert Kiyosaki, author of Rich Dad, Poor Dad, called silver the "best asset". He believes it could hit $50 on industrial and safe-haven demand.
Kitco Silver predicts $36–$38 in 2025, while Citi Research’s 6-to-12-month forecast sees it going to $40.6
And let’s not forget history. In 2010, silver skyrocketed by 80% in a single year. That kind of move could happen again.
Could a Short Squeeze Be Next?
Here’s a wild card: Five U.S. banks are sitting on massive short positions in silver. If prices spike, they’ll be forced to buy back huge amounts of silver to cover their bets, driving prices even higher.
According to the Commodity Futures Trading Commission, silver futures contracts are almost equal to the world’s total annual silver production. If the squeeze happens, the market could be primed for a sharp upward move, and a bonanza for silver owners.
The Takeaway
Silver’s unique blend of industrial demand and portfolio appeal makes it an exciting opportunity in today’s uncertain economic climate. With supply shrinking and demand surging, the time to act may be now.
Whether you’re looking to diversify your portfolio or capitalize on silver’s bright future, this could be the moment to make your move. When held in a Gold IRA, silver can combine potential growth with long term wealth protection. You can learn more about protecting your wealth with precious metals by contacting American Hartford Gold at 800-462-0071.
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Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.
Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.
Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.
AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.
Notes:
1. https://www.mining.com/silver-short-squeeze-coming/
2. https://www.mining.com/silver-short-squeeze-coming/
3. https://www.mining.com/silver-miners-struggle-to-keep-up-with-demand/
4. https://www.investing.com/analysis/silver-price-forecast-for-2025-5-key-considerations-200655661
5. https://www.kitco.com/news/article/2024-09-23/gold-price-could-hit-2700-mid-2025-silver-will-outperform-gold-ubs
6. https://capital.com/silver-price-predictions-for-years-ahead