Gold prices have certainly been garnering headlines since the start of the New Year as the precious metal has continued to climb amid rising safe haven demand. As of this writing, gold is up over 13% year-to-date — but did you know that silver is up over 14%?
Silver does not get as much news coverage as gold, but this lower profile metal which has been dubbed “the devil’s metal”1https://www.ndtvprofit.com/economy-finance/is-silver-the-new-gold-why-experts-are-betting-on-the-devils-metal-in-2025 and “poor man’s gold” — is a strong portfolio diversifier in its own right. It has unique properties, limited supply, and ever-growing demand making it an attractive asset for anyone looking to broaden their portfolio beyond traditional stocks and bonds.
If You Missed Out on Gold, Get in on Silver!
Silver’s lower cost and ongoing supply and demand challenges prompted Market Watch to suggest, “If you missed out on gold’s record run, take a look at silver.”:
“When it comes to investing in precious metals, silver might be an afterthought, given gold’s run to record intraday highs 15 times so far this year. But the white metal could soon steal the spotlight in what one analyst said may be a ‘powerful’ run to its highest price on record.”
Some of the key factors fueling silver demand include its various uses in industrial applications like electronics, LED chips, semiconductors, batteries, chemical production and photovoltaics. Silver also has been operating under a supply deficit. And much like gold, the white metal is driven by ongoing geopolitical tensions and economic volatility.
According to Chicago-based financial services company CME Group,
“Silver is gaining traction, helped by robust industrial consumption, a large supply deficit and lingering global uncertainty. Amid this backdrop, experts see more upside for the precious metal used to power the energy transition and diverse industrial applications.”2https://www.cmegroup.com/openmarkets/metals/2025/Silver-is-Rising-The-Key-Factors-Fueling-Demand.html
Industrial Demand and the New World Order
Silver’s industrial applications have long been associated with steady demand for things like electrical circuits, batteries, and photography. But some of silver’s “new economy” uses are extremely compelling from an investment standpoint. Silver is heavily used in photovoltaics, machine learning, contemporary energy systems and green economy initiatives.
According to The Silver Institute, the “Use Cases” for silver demand include the solar and automotive sector as well as AI Hardware and infrastructure, semiconductors, sensors, and LIDAR (Light Detection and Ranging) or remote sensing systems using radars.
- Green Economy Applications: The photovoltaic (PV) sector continues to anchor demand, as silver plays a critical role in solar panel production. Investments in renewable energy infrastructure have bolstered this trend.
- Automotive Sector: The push for electric vehicles (EVs) and advanced vehicle technologies has increased the need for silver in powertrains, sensors, and charging station infrastructure.
- Technological Advancements: The rapid adoption of AI technologies has spurred demand for new hardware and infrastructure, offsetting challenges in consumer electronics.3https://www.miningvisuals.com/post/industrial-silver-demand-poised-to-hit-record-high-in-2024
All of these are significant demand triggers for silver and with Wall Street pouring billions into artificial intelligence and deep learning businesses and technologies — it’s prudent to consider investing in one of AI’s most critical components:
According to the 2024 World Silver Survey:
“Silver will be an indispensable material for the rise of AI. Demand will come not only from the growth in end-uses with AI capabilities, but also from the increase in facilities required to run AI programs … There are several end-uses that will see a marked increase in the use of AI. The transport sector, for example, will see growth in sensors and cameras linked to vehicles’ improving self-driving capabilities … Healthcare is another new end-use of silver in AI … Not only can AI algorithms be used to encourage healthy behavior by providing reminders, incentives, and feedback, but they can also predict health outcomes by measuring an individual’s activity level, sleep patterns, glucose levels, temperature, and heart rate.”4https://silverinstitute.opt-wp.cloud.bosslogics.com/wp-content/uploads/2024/07/World-Silver-Survey-2024.pdf
All of this translates to a significant increase in silver demand which has now outstripped supply resulting in a physical deficit for the FOURTH YEAR IN A ROW.
How High Could Silver Prices Go?
Much like gold, silver prices have been rallying on inflation, global uncertainty, and market volatility.
Over the past YEAR, silver has risen more than 36%. Over the past FIVE YEARS, silver is up over 134%.
Many experts believe that silver is undervalued and price predictions over the next five years suggest big gains. According to Investing Haven silver will likely rally to $50/oz short-term and could reach $100/oz under the following conditions:
- An extreme silver shortage
- A series of rate cuts by policy makers
- Elevated (monetary) inflation
“A combination of at least 2 out of the 3 conditions will enable silver to move past $100. For instance, an extreme silver shortage and rate cuts can enable a big spike in silver, and so can elevated monetary inflation combined with a silver shortage.”5https://investinghaven.com/silver/can-silver-price-rise-to-100-usd
The gold rally has also influenced silver prices particularly in terms of the Gold/Silver ratio which is the number of ounces of silver needed to purchase one ounce of gold. It currently sits at over 90 and according to Barron’s that suggests silver has room to run:
“The ratio has averaged around 65 since the 1970s and in the past century has swung between 40 and 70 … History suggests that a ratio of 90 is meaningful and indicates that silver is undervalued relative to gold.”6https://www.barrons.com/advisor/articles/silver-gold-price-ratio-investing-af280ea5?mod=barronsgooglenews
Let’s not forget that silver is significantly cheaper than gold, and investors can get a lot of metal for significantly less money. $3000, for instance, buys roughly 88 ounces of silver but not a single ounce of gold. This makes silver more accessible for many and reduces the price of entry into holding precious metals as an alternative asset.
According to online trader IG International,
“Investors seeking exposure to precious metals but deterred by gold’s high price point have increasingly turned to silver trading, providing additional price support. This dynamic creates a self-reinforcing cycle where silver’s relative affordability attracts capital that might otherwise have flowed into gold markets.”7https://www.ig.com/en/news-and-trade-ideas/_what-s-driving-silver-s-price-rally-in-2025–250318
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3 https://www.miningvisuals.com/post/industrial-silver-demand-poised-to-hit-record-high-in-2024
5 https://investinghaven.com/silver/can-silver-price-rise-to-100-usd
7 https://www.ig.com/en/news-and-trade-ideas/_what-s-driving-silver-s-price-rally-in-2025–250318
