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Why Are Silver Prices Increasing?

By: Phoebe Bulotano
February 18, 2025

Silver prices have been fluctuating throughout 2025, influenced by economic, industrial, and geopolitical factors. Meanwhile, as of February 18, 2025, the iShares Silver Trust (SLV) is trading at $29.85 per share, reflecting a 0.018% increase from the previous close. The day’s trading range saw a high of $29.96 and a low of $29.48.

With rising industrial demand, geopolitical uncertainty, and market speculation, analysts predict that silver could reach a 10-year peak of $35 per ounce if the bullish trend continues.

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Key Factors Influencing Silver Prices

Several factors are contributing to the surge in silver prices. Accordingly, these include the expansion of renewable energy, demand for safe-haven assets, market speculation, a weakening U.S. dollar, and industrial growth beyond solar energy.

Industrial Demand from the Renewable Energy Sector

Silver plays a crucial role in solar panel production, making it essential for the renewable energy sector. As countries increase clean energy investments, silver demand has risen significantly.

China has expanded solar energy investments, increasing demand for silver in photovoltaic (PV) cells.
The U.S. and Europe have introduced clean energy subsidies, boosting silver consumption in solar technology.
Moreover, nearly 50% of silver demand comes from industrial applications, with solar energy playing a major role.

However, as global solar panel production expands, silver prices are expected to stay strong through 2025 and beyond.

Geopolitical Uncertainty Driving Safe-Haven Demand

Like gold, silver is considered a safe-haven asset. Investors turn to it during economic and political uncertainty.

Recent U.S. tariff policies have created market volatility, leading investors to buy more silver.
Ongoing geopolitical tensions in Eastern Europe and the Middle East have increased demand for safe-haven investments.
Hence, fears of prolonged inflation and financial instability are prompting investors to diversify into silver.

As global uncertainties persist, demand for silver as a safe-haven investment is expected to grow.

Market Speculation and Bullish Momentum

Investors have become more bullish on silver, with speculative trading pushing prices higher.

If the current trend continues, silver could reach $35 per ounce, its highest price in a decade.
Hedge funds and institutional investors are increasing their silver holdings, betting on continued price growth.
Overall, retail investors are buying silver ETFs, adding more momentum to the market.

With strong demand and market speculation, indeed, silver prices may continue rising throughout 2025.

Weaker U.S. Dollar Boosting Silver Prices

Like gold, silver has an inverse relationship with the U.S. dollar. When the dollar weakens, silver prices tend to rise.

The Federal Reserve has kept interest rates high, raising concerns about a slowdown in economic growth.
A weaker dollar makes silver cheaper for international buyers, increasing global demand.
Consequently, uncertainty surrounding future U.S. interest rate cuts has led investors to buy more silver.

If the U.S. dollar remains weak, silver prices will likely continue rising.

Expanding Industrial Applications Beyond Solar Energy

Beyond renewable energy, silver is widely used in multiple industries, further driving its demand.

Electronics manufacturers depend on silver for circuit boards, batteries, and medical devices.
The automotive sector is increasing silver use in electric vehicles (EVs) due to its conductivity.
The technology industry is demanding more silver, especially for 5G networks and AI-driven devices.

As silver remains a critical material in multiple industries, its long-term demand looks strong.

What Is Happening with Silver?

As of February 18, 2025, silver prices have seen significant fluctuations. They are influenced by geopolitical uncertainty, industrial demand, and market speculation. Besides, the iShares Silver Trust (SLV) is trading at $29.85 per share, reflecting a 0.018% increase from the previous close. The day’s trading range saw a high of $29.96 and a low of $29.48.

Analysts predict that if the current bullish trend continues, silver could hit a 10-year peak of $35 per ounce. Particularly, this upward momentum is fueled by global tensions, rising industrial demand, and increased investor interest in silver as a hedge against volatility.

Outlook: What’s Next for Silver Prices?

With growing industrial demand, geopolitical uncertainty, and strong investor interest, silver prices are expected to remain strong in 2025. Analysts believe that silver could surpass its 10-year high if current trends continue.

Key questions for investors include: