Disclaimer: The information presented in this news item is for informational purposes only and should not be considered as financial advice. Readers are advised to conduct their own research and consult with a professional financial advisor before making any investment decisions.

By Doug Young – 01 February 2025

silver outshining gold

Introduction

Silver, often overshadowed by its more illustrious counterpart, gold, has been making waves in the precious metals market.

With a forecast suggesting a potential rise of over 20% in 2025, silver is poised for a breakout. As investors look for alternative safe-haven assets, silver’s unique properties and dual role as an investment and industrial metal have caught the attention of market experts.

Silver’s Performance in 2024

Silver’s Impressive Gain Amidst Gold’s Surge

In the year 2024, while gold captured headlines with its impressive 27% surge, silver wasn’t far behind, posting a notable 21% gain.

Outpacing several major assets and indexes, silver’s momentum might have been overshadowed by gold’s standout performance, but it did not go unnoticed by savvy investors and strategists.

Expert Analysis on Silver’s Performance

Insights from Ole Hansen, Head of Commodity Strategy at Saxo Bank

Ole Hansen, a respected voice in the precious metals market, detailed the reasons behind silver’s success in 2024 and expressed optimism about its prospects in 2025.

Silver’s rally closely mirrored gold’s upward trajectory, driven by shared macroeconomic factors such as an uncertain geopolitical landscape and an increasing demand for safe-haven assets.

Industrial Demand for Silver

Silver’s Dual Role as an Investment and Industrial Metal

Silver’s importance as an industrial metal cannot be overlooked. With its exceptional conductivity, silver is one of the world’s best conductors of electricity.

In 2024, industrial applications accounted for 55% of silver’s total demand, projected to exceed 700 million ounces for the first time ever. Sectors such as electronics and renewable energy have significantly contributed to this surge, indicating sustained industrial demand in the coming years.

Factors Driving Silver’s Outlook in 2025

Uncertain Geopolitical Landscape and Energy Transition

The geopolitical landscape and economic shifts continue to drive demand for investment metals.

The potential risk of tariffs causing inflation and a weakening dollar further fuels the demand for safe-haven assets.

With the energy transition gaining momentum, silver’s role in supporting this shift is crucial. Investments in power grid infrastructure and the growing need for renewable energy sources contribute to the positive long-term outlook for silver.

Silver Price Forecast for 2025

Hansen’s Bullish Outlook and Potential Upside Targets

Ole Hansen maintains a bullish outlook on silver for 2025, stating that investor demand and factors driving industrial demand could propel prices.

Hansen suggests a potential upside target of $38 per ounce, indicating a 23% surge from current levels. However, the focus should not solely be on hitting the price target, but rather on recognizing silver’s unique potential to serve as both a hedge and experience price surges.

Conclusion

As the year 2025 unfolds, silver’s prospects in the precious metals market seem promising.

Its dual role as an investment and industrial metal, coupled with the increasing demand driven by geopolitical uncertainties and the energy transition, positions silver as an intriguing investment opportunity.

Whether it outshines gold or not, silver’s unique potential to serve as a hedge and experience price surges makes it a metal worth watching in the coming year.

Disclaimer: The information presented in this news item is for informational purposes only and should not be considered as financial advice. Readers are advised to conduct their own research and consult with a professional financial advisor before making any investment decisions.

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