Philip Newman

The silver price will be impacted by contrasting drivers in 2025. First, strong gold prices in the first half will also benefit silver. Support for the price will also come from another massive deficit, for the fifth year in succession. This will result in a cumulative stock drawdown over this timeframe of over 27,000 tonnes. By contrast, ongoing concerns about the prospects for the Chinese economy will weigh on industrial commodities, including silver, given its dual role as a precious and industrial metal. This helps explain why, even though gold is forecast to reach $3,000 during the first half of this year, silver will peak at $36.00, with the gold:silver ratio remaining stubbornly high in the low 80s. Later this year, liquidations in the gold market will spill over into silver, resulting in a low for 2025 of $25.50. Even so, the full year average of $30.60 will still be 8% higher year-on-year, delivering the highest annual average since 2012.