The price of silver is still struggling to hold the crucial support at $36 per ounce, while the price of gold continues to fluctuate around the $3,300 per ounce mark. However, some analysts believe that the price of silver has plenty of upside potential and could initially detach itself from the gold price trend.
The experts at Natixis, in fact, expect silver to perform even better than its big brother gold in the second half of 2025. According to the analysts, the price of silver should rise to around $38 per ounce by the end of the year, while gold is more likely to stagnate at $3,250 per ounce by then.
Natixis expects the price of silver to decouple significantly from the price of gold. The correlation between the two precious metals has historically been very high at 0.8. Since the beginning of 2025, however, this value has fallen to 0.55, which, according to the experts, should support the price of silver. Silver, the analysts explain, should now be significantly less influenced by how the price of gold develops.
In the past two years, gold price performance has significantly outperformed silver performance, mainly due to economic uncertainty and geopolitical turmoil. However, this gap has begun to narrow since May, as many investors saw and continue to see greater potential in silver within the precious metals sector.
Demand for Silver from the Solar Sector is Approaching the 20% Mark
For the future, Natixis sees industrial demand as the most important factor for strong silver performance. This now accounts for 59% of global silver consumption, compared to just 51.5% in 2019. A large part of this demand comes from the silver requirements of Renewable Energies. The share of demand from the solar sector in total demand for the precious metal has risen from 6% in 2015 to 16% in 2023 and is approaching the 20% mark for 2024!
However, the analysts also see the main risk for the price of silver in this. If the energy transition narrative weakens and the transition to green energies slows down, this could put the price of silver under strong pressure, it was said. In this regard, a new bill currently pending in the US Senate could also dampen silver demand, which provides for a new tax on wind and solar energy projects that are completed after December 31, 2027 – unless the project developers can prove that they do not use Chinese components.
