Recently, the price of silver has continued to climb, attracting widespread market attention. Particularly in mid-February 2025, the price of silver once broke through the $33 per ounce mark, reaching a nearly four-month high. Investors and industry insiders are closely watching the subsequent trend of silver prices, attempting to find answers from perspectives such as market supply and demand and the policy environment.
As the global economy gradually recovers, the revival of industrial production activities has led to increased demand for silver, becoming a significant driving force for the recent rise in silver prices. As a precious metal with extensive industrial applications, silver plays an indispensable role in sectors such as the photovoltaic industry, electronics manufacturing, and medical devices. According to data from the Silver Institute, global industrial demand for silver reached 540 million ounces in 2024, an increase of about 8% from the previous year, and this growth momentum is expected to continue in 2025.
Additionally, rising safe-haven sentiment has also supported silver prices. Influenced by factors such as geopolitical tensions and persistent global inflationary pressures, investors’ demand for physical asset allocation has increased, boosting investment demand for silver. According to statistics from the Chicago Mercantile Exchange (CME), from January to February 2025, open interest in silver futures increased by about 12%, reflecting market participants’ bullish expectations for the future price of silver.
Recent U.S. trade policy developments have become a significant factor influencing silver price volatility. The market had previously anticipated that the U.S. would impose additional tariffs on certain imported products. Although the specific measures have been postponed until March, the news has already caused market concern, further stimulating the rise in silver prices. At the same time, the periodic weakening of the U.S. dollar index has also provided some boost to silver prices.
On the other hand, the market is also focused on the monetary policy direction of major economies. If the Federal Reserve initiates interest rate cuts within the year, it could lower the opportunity cost of holding non-interest-bearing assets, indirectly benefiting silver prices. However, if the rate cuts are delayed, it could suppress the rise in silver prices. Therefore, policy uncertainty will continue to sway market sentiment.
Overall, silver prices are likely to continue fluctuating at high levels in the short term. Growth in industrial demand and safe-haven sentiment support an upward trend, but policy variables and increased market volatility will also bring some pressure. Investors need to closely monitor developments in U.S. trade policy, the Federal Reserve’s monetary policy direction, and the global economic recovery to make more flexible investment decisions amid heightened silver price volatility.
As more market news is released, the trend of silver prices may become clearer. Whether for long-term allocation or short-term trading, investors need to carefully assess risks and reasonably time their entry to cope with potential sharp fluctuations in the silver market.
*The content of this article is for sharing and reference purposes only and does not constitute professional investment advice. As individual circumstances and needs vary, you may contact the Cashback Island team or consult your financial planner for professional advice.
The main factors for the recent increase in silver prices include the following:
Supply and Demand Changes: The global economic recovery has led to a rise in industrial demand, especially in industries like photovoltaics and electronics manufacturing, where the demand for silver has grown significantly.
Safe-Haven Sentiment: Geopolitical tensions and global inflationary pressures have driven investors to increase their allocation to physical assets, boosting investment demand for silver.
Policy Uncertainty: Changes in U.S. trade policy, expectations of additional tariffs, and uncertainty about the timing of Federal Reserve interest rate cuts have exacerbated market sentiment fluctuations, affecting silver price trends.
Silver ETFs (Exchange-Traded Funds) are investment instruments based on silver as the underlying asset, allowing investors to indirectly invest in silver through the stock market without having to purchase physical silver directly. Here are some well-known silver ETFs:
|
Silver ETF |
Exchange |
| iShares Silver Trust (SLV) | New York Stock Exchange (NYSE Arca) |
|
SPDR Silver Trust (SIVR) |
New York Stock Exchange (NYSE Arca) |
|
VanEck Merk Gold Trust (OUNZ) |
New York Stock Exchange (NYSE Arca) |
| ProShares Ultra Silver (AGQ) | New York Stock Exchange (NYSE Arca) |
| ProShares UltraShort Silver (ZSL) | New York Stock Exchange (NYSE Arca) |
| Global X Silver Miners ETF (SIL) |
New York Stock Exchange (NYSE Arca) |
| ETFS Physical Silver (SIVR) | London Stock Exchange (LSE) |
| Aberdeen Standard Physical Silver Shares ETF (SIVR) | New York Stock Exchange (NYSE Arca) |
You can refer to TradingView and other foreign exchange brokerage platforms for real-time dynamic data.
