Will silver continue to excel in 2025 after an exceptional performance in the previous year?

Silver witnessed a strong performance during 2024, achieving significant gains of more than 20%, making it one of the most prominent precious metals in global markets. This exceptional performance is due to the increase in industrial and investment demand for it, in addition to its positive interaction with economic and geopolitical conditions, as the price of silver in global markets reached about 29.63 US dollars per ounce today, Wednesday, according to what was reported by the global website “The Precious Metals Reporter”.

Silver price forecast in 2025

With the beginning of 2025, questions are increasing about silver’s ability to continue this momentum in light of the challenges and opportunities looming on the horizon.

Industrial demand was the most prominent factor behind silver’s outperformance in 2024. Metals used in the technology and renewable energy industries, such as solar panels and batteries, witnessed notable growth as a result of the expansion of clean energy projects and electric cars.
Read also: 4 factors driving gold and silver prices to recover

Use silver as a safe haven

In addition, economic and geopolitical tensions led investors to resort to silver as a safe haven, which boosted demand for it. The weakness of the US dollar during the second half of last year also played a role in raising silver prices, as it became less expensive for international investors.

Looking ahead to 2025, experts expect silver to remain supported by high industrial demand, especially as renewable energy and technology projects continue to expand. The World Silver Council report indicates that these sectors will remain the main driver of the silver market.
Read also: As 2025 approaches… who are the winners and losers in the commodities market this year?
Moreover, the decisions of central banks, especially the US Federal Reserve, regarding monetary policy may affect the performance of silver. If the trend towards easing monetary policies and lowering interest rates continues, silver could see a further rise.

Challenges that may hinder silver’s progress

Despite the optimistic expectations, there are challenges that may hinder silver’s progress this year. If demand for renewable energy or technology slows for any reason, this may lead to a decline in industrial demand for silver. In addition, if global markets experience greater stability compared to 2024, silver’s role as a safe haven may decline in favor of other assets such as stocks. Competition with gold is another challenge, as investor interest may shift towards gold if it proves attractive as a major investment asset.

Determinants of investing in silver

The website says that investors wishing to benefit from investment opportunities in silver should closely monitor developments in global markets and trends in industrial demand. Diversifying the investment portfolio remains an important strategic option to reduce potential risks resulting from economic fluctuations.

With continued supporting factors such as industrial demand and favorable monetary trends, silver may achieve positive performance in 2025. However, its success in maintaining momentum remains dependent on the balance between global economic conditions and industrial needs, which makes investing in it an attractive option for investors seeking safety and growth in the future. Unstable financial environment.