Three Reasons Silver Soars in 2025

I believe we are in the earliest days of a years-long silver boom.

And history shows that if you act early on a silver rally, the gains can be life-changing.

In the 1970s, for instance, silver prices soared by over 1,900%. From 2001-2007, silver prices more than quadrupled while the S&P 500 stayed basically flat. And in 2008-2011, silver surged by 150%.

Silver prices have risen about 25% in 2024 so far, leading mainstream financial media organizations like Barron's to call silver the asset that's "beating both gold and the stock market."

Here are three reasons that silver has much more room to run in 2025 and beyond.

Silver Catalyst No. 1: A Historic Supply/Demand Gap

In 2021, the world consumed 81 million more ounces of silver than was produced in mines around the world.

In 2022, that gap grew to 253 million ounces.

In 2023, 184.3 million more ounces of silver were consumed than produced.

And in 2024, estimates are that demand for silver will outstrip supply by a further 200 million ounces.

This groundswell in silver demand is growing because silver, unlike gold, is a metal with a wide array of industrial uses.

And because silver supply can't be turned on like a tap—it's a byproduct metal, meaning most mines around the world produce it on the side while mining for gold—the groundswell in demand will be a powerful catalyst for silver prices.

And there are two major reasons that the industrial demand for silver is poised to grow in 2025 and beyond…

[More Nic: Trade ideas from the strategy that I developed over my 20 years of experience here!]

 Silver Catalyst No. 2: The Artificial Intelligence Revolution

If you've followed the investment ramifications of the $15.7 trillion AI Revolution, you likely know how well semiconductor manufacturers like NVidia (NVDA) have done over the last two years.

After all, their semiconductors are needed for the vast amount of processing power that each AI data center requires.

But there's a lesser-known winner to the AI Revolution: silver.

It's not commonly known, but silver is the best conductor of electricity on the Periodic Table. It has the highest known reflexivity of any raw material.

This makes it a critical component in the powerful semiconductor chips needed for AI.

In fact, the AI Revolution is expected to boost silver consumption by 23 million ounces by 2030.

This tailwind for demand can only boost silver prices, no matter which individual AI stocks take off in the years ahead.

And that's all before we get to…

Silver Catalyst No. 3: The Clean Energy Revolution

The AI Revolution will be a significant catalyst for silver demand—but the amount of silver needed for the global clean energy revolution absolutely dwarfs AI's 23-million-ounce appetite for silver.

Silver's utility as a conductor of electricity makes it valuable for solar panels, wind turbines, and electric vehicles.

In the U.S. alone, the 105 million solar panels installed in 2024 will require 67 million ounces of silver, while China's solar panels will need 71.4 million ounces.

Meanwhile, electric cars need twice as much silver as their fossil fuel counterparts. Each electric car needs about 1.3 ounces of silver… and with tens of millions of EVs forecast to hit the road by 2030, those amounts add up in a big way.

Nuclear reactors require around 56,000 ounces of silver each—so as governments from the U.S. to Poland to Japan commission new nuclear power plants, this will drive silver demand as well.

The world can't go green without silver… and as long as our politicians around the world are willing to spend trillions of dollars on clean energy, silver demand has nowhere to go but up.

That said—silver is a volatile asset. Even amid booms, it typically can see fast swings in either direction, so anyone seeking to act on this setup should always keep risk management front and center through position sizing, and never investing more than they can afford to lose.

Above all, investors should be patient. History shows that silver booms can take years to play out—but investors who make sure to be there for the entire ride will be very glad they did so.

Regards,

Nic Chahine

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