Though a stronger dollar caused silver to retreat in the past month, retail investors are still expecting the precious metal to rise above $40 in the new year according to a survey by Kitco News.
Out of a survey of 84 retail traders, just about half expect silver to breach the $40 price mark in 2025. As Kitco News pointed out, this means that silver could match or even exceed its all-time high of $48 over 13 years ago. Another 20% see silver hitting between $35 to $40, which means the majority of survey respondents are bullish on silver, relative to its current price of level of close to $30. Conversely, just 23% see silver falling below $30.
Silver was rallying alongside gold for much of the year, even besting its more expensive counterpart. That rally was stifled in a post-election rally for the dollar, as more investors dialed up the risk and allocated more into equities.
However, a number of analysts cited the still-strong fundamentals supporting silver in the new year. Silver also tends to make more amplified moves relative to gold, so if another rally continues in 2025 for gold, expect silver to do the same.
“This year’s silver rally hasn’t shown any fundamental differences compared to past surges,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Silver continues to mirror gold’s movements, but with more intensity. Often referred to as gold ‘on steroids,’ silver tends to rise and fall more dramatically than its steadier counterpart.”
Silver’s Role in Clean Energy
Apart from the macroeconomic forces affecting precious metals, silver also has the duality of an industrial metal. Its use will be critical as the world transitions to more clean energy sources, such as electricity. Silver’s electrical conductivity properties make it an essential component in developing clean energy technology.
“If you get to $36, $37, $38 [per ounce]next year, you’re looking at an average price probably about $32, $33, and the market really would appreciate that,” said Michael DiRienzo, president and CEO of the Silver Institute. “Those banks […] that are making these projections are doing it for a reason, and the reason is that silver continues to be a valuable resource, and its future is extraordinarily bright with the Green Revolution.”
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