The silver market is expected to experience a deficit for the fifth consecutive year in 2025, with industrial demand continuing to be the main driver of this supply-demand imbalance. Silver prices have risen under the president’s administration due to geopolitical uncertainty and tariff fears, resulting in short supply and increased supply to CME warehouses.
Industrial silver production is expected to reach an all-time high in 2025, driven by the growth of renewable energy industries, particularly photovoltaics and automobile electrification. Other industrial applications such as consumer electronics and ethylene oxide synthesis will also have a positive impact on silver demand.
On the supply side, global silver production is forecast to increase by 3% to 1.05 billion ounces. Growth will be driven by increased mine production from key countries such as China, Canada, Chile and Morocco, and a 5% increase in silver recycling. Despite the increase in supply, the silver market will still be in a deficit of about 149 million ounces, 19% less than the previous year’s deficit.
