The silver price is currently well on its way to surpassing the $38 per ounce mark in the spot market. It’s no wonder that the precious and industrial metal remains at its highest level in 13 years, as investments in silver rapidly increased in the first half of the year due to geopolitical and economic uncertainty, as reported by the Silver Institute.
On average, the silver price saw an increase of 25% in the first half of 2025, meaning the metal lagged only slightly behind its big brother, gold (+26%). As the analysts further explained, the high gold:silver ratio in April and May also indicated that silver appears undervalued in the long term. A renewed positive sentiment in the industrial metals sector following the resumption of trade talks between the USA and China further supported the price, according to experts.
Silver Still Undervalued in the Long Term
The strong silver price performance in the first half of the year has led investors to pay significant attention to the precious metal, according to the SI. In the first six months of 2025, inflows of approximately 95 million ounces into silver ETPs (Exchange Traded Products) were observed. This already surpassed the total investments of the previous year, it was further stated. This means that the investment community expects further increases in the silver price.
Overall, according to the Silver Institute, ETP silver holdings on June 30, 2025, stood at 1.13 billion ounces, only slightly more than 7% below the previous record of 1.21 billion ounces from February 2021. Given the rising silver price, the value of these holdings continued to increase, exceeding the $40 billion mark for the first time in June, according to analysts.
According to their statement, growth was quite steady in the first five months of this year before purchases exploded in June. This month alone accounted for almost half of the growth in the first six months.
Investor Appetite for Silver also Evident in the Futures Market
As the Silver Institute further reports, the futures market also reflects the increased interest from investors. According to experts, the net positions of “Managed Money” on the CME have risen sharply this year.
As of June 24, with no fresher data available yet, net long positions have increased by a massive 163% compared to the end of 2024. Institutional investors, in particular, have bet on silver as a store of value this year, the SI added.
On the other hand, a more mixed picture emerged among private investors. While a significant recovery in interest in silver was observed in Europe, for example, it started from a comparatively low level.
While retail silver demand in India rose by a strong 7% compared to the first half of last year, private investors in the US are largely still divesting the precious metal. Overall, the Silver Institute estimates that silver demand from the US has fallen by at least 30% so far.
What Happens if Silver Rises above $40 per Ounce?
The Silver Institute is uncertain how investors will react if the silver price exceeds the $40 per ounce mark. A mix of profit-taking by some investors is possible, while other investors might invest even more in silver, expecting further price increases.
At Goldinvest.de, however, we primarily believe that at $40 per ounce of silver, companies in the sector should benefit greatly. Producers – although there are few who primarily mine the metal – as well as silver project developers and explorers!
We have gathered some companies on www.goldinvest.de 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) or Summa Silver (WKN A2P4EE / TSXV SSVR).
A special position is held by Cerro de Pasco Resources (WKN A2N7XK / TSXV CDPR). The company has an estimated 430 million ounces of silver equivalent in 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. And Terra Balcanica Resources (WKN A40DA5 / CSE TERA) also has its eye primarily on silver in Bosnia and Herzegovina.
In our view, the silver sector remains promising, as we are among those who believe that the silver price increase is far from over.
