Silver recently achieved a significant technical milestone, breaking through the $35 per ounce resistance level to reach its highest point in over a decade. With the current price around $38, the precious metal is approaching its last high of $48 from 2011, as well as the all-time high from 1980, according to experts at Sprott in their mid-year silver investment outlook.
In the first six months of 2025, the price of silver gained a remarkable 24.94%—following an already strong 21.46% in 2024. This performance is supported by a growing structural supply deficit, rising industrial demand, and increasing investor interest, say the analysts.
Silver in Deficit for Seventh Consecutive Year
Particularly relevant for investors: According to Sprott, the silver market has been in a supply deficit for the seventh consecutive year. Mine production has decreased by seven percent since 2016, while industrial demand—especially from the electronics and renewable energy sectors—has significantly increased. Silver is a key element for technologies such as solar panels, electric vehicles, and 5G networks, the experts explain. Demand from the solar industry alone has tripled since 2015, even though technological advancements have recently led to more efficient uses.
At the same time, silver is gaining importance as a safe haven amidst geopolitical tensions, persistent inflation, and economic uncertainty. Unlike gold, which is primarily driven by central banks, the silver market is more dependent on the dynamics of private and institutional investors. This is also evident in the strong demand for physical silver and silver ETPs—especially from Asia and North America. In the first half of 2025, 95 million ounces were purchased via ETPs, effectively withdrawing liquidity from the market, Sprott further notes.
Silver: an Attractive Combination of Growth Opportunity and Value Preservation
Additionally, there’s a historically unusual valuation ratio: silver is currently trading at 91 times the price of gold—significantly above the historical average of 67. This disparity indicates substantial catch-up potential, especially since silver is mined at a ratio of only 7:1 to gold. The market is therefore susceptible to a “Silver Squeeze”—a sudden surge in demand for physical silver that, due to low trading reserves, can trigger a disproportionate price reaction.
Against the backdrop of historical experience—where silver has often significantly outperformed gold—and given growing deficits, silver offers an attractive combination of growth opportunity and value preservation. For investors seeking exposure to a scarce, industrially demanded, and crisis-proof commodity, silver currently represents a compelling investment option, according to the experts.
Silver Companies Set to Benefit Significantly from Sustained High Metal Prices
At Goldinvest.de, however, we also believe that with persistently high silver prices, companies in the sector are likely to benefit significantly. Producers—of which there are few that mine the metal as a primary product—as well as silver project developers and explorers!
On www.goldinvest.de, we have compiled a list of companies that we consider particularly promising in a strong silver price environment. These include, among others, the project developer Silver Tiger Metals (WKN A2P4YL / TSXV SLVR) and explorers such as Silver47 Exploration (A408EQ / TSXV AGA).
Cerro de Pasco Resources (WKN A2N7XK / TSXV CDPR) plays a special role. The company holds an estimated 430 million ounces of silver equivalent at its polymetallic reclamation project in Peru! Also interesting, in our opinion, is the royalty company Silver Crown Royalties (WKN A40GTS / CBOE SCRI), which pursues a completely different business model, providing non-dilutive financing for silver companies. And Terra Balcanica Resources (WKN A40DA5 / CSE TERA) also has its sights primarily on silver in Bosnia and Herzegovina.
Some of these companies have already begun to follow the upward trend in silver prices. However, we believe the silver sector remains promising, as we are among those who expect the silver price rally is far from over.
