Silver’s Stellar 2024 Performance, 2025 Outlook

Silver has performed very well this year fueled by a number of factors, including the demand for investment-worthy metals driven by a fluid geopolitical landscape. The metal hit a 12-year high, which is commendable while gold achieved multiple new highs this year.

Silver’s duality as both a precious and industrial metal is expected to continue influencing its market dynamics. Over 50% of the metal’s total demand is derived from its industrial uses. This year alone, industrial demand for the metal has assisted in the creation of physical tightness within the metal’s market.

Sectors like renewable energy and electronics have substantially fueled this increase, with experts expecting that increased industrial demand will keep the metal in a supply shortage into next year.

The current deficit can be attributed to the struggle to find new deposits, even with the increase in PV cell demand. Solar technologies make up almost 20% of total industrial demand for silver, which demonstrates the global shift toward renewable energy.

Investment demand for the metal has also been steady for the year, with total exchange-traded fund holdings as of this month standing at 712,000,000 ounces. This is a 1.7% increase as compared to 2023 holdings, with experts noting that long-term holdings in ETFs are moderately slim ahead of next year, which leaves room for possible price gains.

The aggressive purchasing of gold by central banks in an effort to diversify from dollar-based assets and the U.S. dollar has also indirectly supported silver prices. Additionally, concerns about increasing global debt, especially in the U.S., have pushed investors to hedge against economic instability using precious metals like silver.

Further, the likelihood of interest rate cuts has also bolstered non-yielding assets like silver. While the metal often performs better than gold when industrial metals are rallying, silver lacks steady demand from central banks, which makes the metal more volatile, particularly during corrections.

According to the Silver Institute, the metal’s market is well positioned to witness a huge structural deficit which experts believe may give the metal a boost, similar to the help given to gold by central banks. Given that the metal is a by-product during zinc, lead, gold, and copper mining, higher prices aren’t likely to stimulate an increase in production. This helps ensure that supply limitations will continue to support the market.

For 2025, analysts at Saxo forecast a possible decline in the gold-to-silver ratio, expecting that it shall drop to 75 from 87. As the fundamentals of the silver market consolidate in favor of an upward price movement, mining industry players like First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) could offer impressive shareholder value.

NOTE TO INVESTORS: The latest news and updates relating to First Tellurium Corp. (CSE: FTEL) (OTCQB: FSTTF) are available in the company’s newsroom at https://ibn.fm/FSTTF

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