Silver Nearly Doubles In 2025; Will It Hit $60 Next Year?

Silver's spectacular run in 2025 has become one of the most defining market stories of the year, with the metal soaring nearly 100% and hitting fresh record highs. Often referred to as the “Devil's Metal,” silver has dramatically outpaced gold and other major commodities, fuelled by a rare convergence of industrial demand, structural supply shortages, and strong investor interest.

The metal has rallied 93% year-to-date, surpassing a previous peak set during the historic London squeeze of October. Its meteoric rise has also coincided with growing chatter around potential tariffs after silver was added to the US Geological Survey's critical minerals list, further boosting sentiment.

While gold has climbed 59% this year and crossed $4,000 an ounce, silver has been the standout performer, benefiting from both its precious metal appeal and its expanding role in clean energy and technology.

Robust Industrial Demand 

The biggest driver of silver's 2025 surge has been robust industrial demand. The global push for electrification has made silver indispensable in solar panels, EV components, and AI-related infrastructure. Demand from the solar industry alone has skyrocketed, with manufacturers relying heavily on silver's conductivity. New-age technologies continue to underpin consumption, reinforcing the metal's dual identity as both a safe haven and an industrial workhorse.

Supply shortfall

The supply story has added even more fuel to the rally. London's vaults — one of the world's key silver storage hubs, saw inventories shrink by nearly a third between June 2022 and March 2025. This steep drop signalled an acute physical squeeze. At one point in October, overnight borrowing costs for silver spiked to an extraordinary 200% annualised, underscoring just how tight supplies had become. This marks the fifth consecutive year of supply deficits, setting silver apart from other metals.

Rhona O'Connell, head of market analysis EMEA and Asia at StoneX, highlighted the stress on physical availability, noting that London's vaults “had reached a point where there was basically no available metal left.”

India too played an influential role. Silver prices in domestic markets surged as much as 85% during the festive season, with farmers and households embracing the metal as an investment of choice. The heightened buying further amplified global demand pressures.

Is This Silver Rally Different?

Silver's unique position as both an industrial and precious asset continues to attract diversified investor inflows. As analysts point out, this rally differs from earlier spikes tied to manipulation or financial crises. Instead, it is being driven by long-term structural forces — especially electrification, renewable energy expansion, and constrained supply.

"This is not a replay of the 1980 speculative cycle. Silver is no longer the 'poor man's gold'; it has evolved into a strategic industrial metal entering a full-scale, structurally driven global bull market," said Ponmudi R, CEO, Enrich Money.

What Brokerages Have To Say?

UBS remains bullish on silver, seeing scope for further upside as investment and industrial demand stay strong. The brokerage expects prices to reach $60 per ounce by 2026, supported by persistent supply deficits, robust solar and EV demand, and improving macro sentiment. Hopes of a Federal Reserve rate cut in December have also strengthened the investment case.

Analysts believe silver's moment is far from over. With clean energy transitions accelerating, technological applications expanding, and inventories still tight, the metal's extraordinary rally may only be entering its next phase.