Silver prices rose 0.61% to 98,141, supported by the dollar index, which fell for a fourth straight session below 104, its lowest level since November. The dollar’s weakness was driven by concerns over tariffs, a widening US trade deficit and rising unemployment, while the European Central Bank (ECB) cut its key interest rates by 25 basis points, further supporting silver’s bullish momentum. On the supply side, silver inventories on the Comex hit a record high of 403.2 million ounces, reflecting strong inventories.
Hecla Mining, the largest silver producer in the US, announced a 13% increase in silver production for 2024, reaching 16.2 million ounces – the second highest production level in its history. However, demand trends were mixed. While industrial demand is expected to reach record levels in 2025, U.S. silver coin purchases in January fell 27% year-on-year to 3.5 million ounces, the lowest January demand since 2018. Global silver demand is expected to be stable at 1.2 billion ounces, with a 3% increase in industrial use offsetting weaker jewelry and silverware demand. Despite the increased supply, the silver market is expected to remain in deficit for the fifth consecutive year, with a deficit of 149 million ounces in 2025.
