What The Data And History Tell Us About Silver's 2025 Rally

What The Data And History Tell Us About Silver's 2025 Rally

Demand for silver in the industry

By the year 2025, industrial use will account for more than 55% of the global demand for silver, which is an increase from 47% ten years ago. Most of the growth can be attributed to:

• The manufacturing of solar panels (photovoltaic cells require up to 20 grams of silver each)

• Making and putting together electric cars 

• Technology related to batteries and semiconductors

• The surge in silver prices per ounce indicates that actual consumption, as opposed to speculation, is the primary driver of these prices.

Both exchange-traded funds (ETFs) and the purchase of physical silver are on the rise

• Over one hundred million ounces of silver have been added to the holdings of global exchange-traded funds (ETFs) in the year 2025, while sales of physical coins and bars continue to be close to record levels.

• Gold and silver coins weighing one ounce, silver bars weighing ten ounces, and collectable rounds from mints such as the Scottsdale Mint, Germania Mint, and British Royal Mint are in high demand, according to dealers located throughout North America.

• The American Silver Eagle coin remains the most popular bullion product, with monster boxes selling out at a rate that is significantly faster than in previous years.

The data from the past indicate that there is sustainable growth, not a bubble

When looking at price charts from the past:

• The price of silver has been steadily going up since the middle of 2023, as shown by the chart. 

• Unlike the vertical spikes that happened in 1980 or 2011, this rally has set up a channel that will keep going up. 

• Another sign that the market is stable is that the average daily trading volume is healthy and not too high. 

 When inflation is considered, the current price of silver is still less than its all-time high in 1980. This shows that silver is still a value play and not an asset that has reached its peak. Analysts who use long-term data models to track the value of silver think that it could slowly rise in value until it reaches $50 an ounce. However, they don't think that silver prices will be as volatile as they have been in the past.