Why silver is rising rapidly in 2025

Silver has become a real market star: in July 2025, the price reached $39.40 per troy ounce - the highest in 14 years! The market is buzzing due to a combination of geopolitical turmoil, supply shortages, and fierce demand, making this metal a hot topic for investors and industrialists.

US tariffs as a catalyst for growth

US copper tariffs of 50% from August 2025 and trade restrictions with Mexico have pushed up silver futures premiums in the US, increasing spot market lease rates. Although silver was not subject to sanctions, the market reacted by copying the dynamics of copper.

Deficit and industrial demand

Silver has been in short supply for the fifth year in a row, as production has not kept pace with demand. Solar energy, electronics, and the automotive industry are consuming the metal: demand for photovoltaic panels alone grew by 20% over the year!

This structural deficit keeps prices high, as the industry has no plans to slow down.

Silver vs. gold: trends and investments

Silver is up 36% since the beginning of the year, outperforming gold (31%), and is close to $40 per ounce. The ratio with gold improved to 87 ounces of silver per ounce of gold, the best in seven months. Due to affordability and demand, silver is attracting investors looking for an alternative to gold:

• Lower price: ideal for small portfolios.
• Industrial demandFrom 5G to solar panels.
• Diversificationfunds are buying silver to protect themselves from risks.

Forecasts and opportunities for Ukrainians

Experts see silver at $42 per ounce by the end of 2025, with the potential to reach $45 in 2026, although short-term corrections to $35 are possible due to speculative excitement. For Ukraine, this opens up prospects, but there are also nuances due to dependence on imports.

Short-term prospects

Analysts such as Nikki Shils of MKS PAMP believe that the tariff panic could push prices over $40 in the near future. But when the excitement dies down, rental rates on the spot market may decline, which will cool the market down a bit. Ukrainian investors should keep an eye on these fluctuations to catch the right moment to buy.

Long-term trends

The silver shortage is not going to go away, as green technologies such as solar energy are only gaining momentum. WisdomTree predicts a steady rise to $45 in 2026, advising Ukrainian investors to consider silver as a hedge against inflation. However, local taxes and logistics costs for imports should be taken into account, which can affect profitability.

Silver is your chance in 2025

Silver in 2025 is a real magnet for investors and industry. Due to the shortage, growing demand and affordability compared to gold, it promises to remain in the spotlight. For Ukrainians, this is an opportunity to protect their savings from inflation, but with a smart approach - follow the market and choose the right time to invest to take advantage of the growth wave.

Source:reuters.com