Usman Salis
The silver market in 2025 continues to show a significant imbalance between supply and demand. Total silver demand has risen +16% compared to 2016, while total supply is down by –3%, and mine production has fallen –7% compared to 2016. These figures, combined with robust industrial growth, are supporting a positive silver price outlook.
Supply and Demand: Structural Deficit Persists
The chart highlights the cumulative shortfall of nearly 800 million ounces (25,000 tonnes) from 2021 to 2025. Key drivers include:
- Electrical & electronics demand +51% compared to 2016
- Growing demand for jewelry and industrial uses
- Decline in mine production despite strong investment flows
The persistent gap between demand and supply is tightening the market and creating upward pressure on the silver price.
Industrial Demand and Tech Boom
Silver remains vital in:
- Solar photovoltaics (PV)
- Consumer electronics (smartphones, wearables, AI devices)
- Automotive electronics (EVs, sensors, wiring)
- Power grids and 5G infrastructure
Solar PV demand surged from 5.6% of total demand in 2015 to 17% in 2024, reflecting the electrification trend. Even as efficiency improvements reduce silver use per device, overall industrial consumption is rising, supporting the silver price.
Investment Demand and Market Tightness
Investment flows also play a crucial role:
- Silver-backed ETPs added +95 million ounces in H1 2025
- Since 2019, over 1.1 billion ounces have been withdrawn from mobile inventories
Such accumulation limits availability for industrial applications, sustaining bullish momentum in the silver price.
Conclusion
The structural deficit, industrial growth, and strong investment demand highlight why silver’s outlook remains bullish in 2025. With supply lagging behind the rapid growth of technology and renewable energy, the silver price is likely to remain under upward pressure throughout the year.
Usman Salis
