With gold stealing headlines, silver is quietly positioning itself for a dramatic revaluation. Bolstered by surging industrial demand, tight supply, and a renewed role as a monetary hedge, silver is drawing attention from both institutional and retail investors. Could prices top €40 ($45) per ounce — and stay there?
After lagging behind gold for much of 2023 and 2024, silver has finally joined the rally in 2025. Prices recently climbed above €30 per ounce, up more than 35% year-to-date. Analysts now see the potential for silver to reach €35–€40 within the next 12 months, with some even predicting a longer-term move beyond €50, should macro and supply dynamics align.
Industrial Demand Surging in the Green Economy
One of the most powerful tailwinds for silver is booming industrial demand — particularly from the green energy transition. Silver is critical in solar panel production, electric vehicles (EVs), and advanced electronics. With global clean energy investment set to surpass $2 trillion in 2025 (according to the IEA), silver is benefiting as a foundational input.
Solar alone accounts for over 15% of total silver demand and continues to grow rapidly. In China, the U.S., and Europe, solar panel manufacturing is expanding to meet climate targets. According to Metals Focus, silver use in photovoltaics could rise to 180 million ounces in 2025 — up nearly 30% from just two years ago.
EV demand is also accelerating. Silver’s high conductivity makes it essential in automotive electronics, battery management systems, and charging infrastructure. As automakers race toward electrification, silver stands to benefit at every stage of the supply chain.
Supply Remains Tight, Investment Interest Growing
While demand climbs, supply remains constrained. Global silver mine output fell slightly in 2024 and has only marginally recovered in 2025. New silver projects are limited, and many existing mines face declining ore grades. The Silver Institute expects a structural deficit of over 100 million ounces this year — the fourth consecutive annual shortfall.
This imbalance is attracting investor attention. ETF holdings have stabilized after previous declines, and inflows are returning. Major mints have reported record demand for silver bullion coins and ingots in early 2025. “Silver is the cheapest hard asset with real upside,” said a strategist at UBS. “The fundamentals are too compelling to ignore.”
Some institutions, including Wells Fargo and Credit Suisse, have initiated new overweight positions in silver, citing tight physical markets and growing strategic use.
Silver as a Monetary Hedge — Again
Traditionally known as “poor man’s gold,” silver has long played a dual role — part commodity, part currency. In 2025, that monetary identity is resurfacing. With global debt approaching $350 trillion and rising concerns about fiat currency stability, investors are revisiting silver’s historic role as a store of value.
While gold dominates headlines as a central bank reserve asset, silver’s affordability and accessibility make it attractive to a broader swath of investors, particularly in emerging markets. In Turkey, India, and parts of Latin America, retail silver buying has spiked.
As inflation persists above central bank targets and real interest rates remain negative or near zero, silver’s appeal as a hard asset is growing. Analysts at Deutsche Bank suggest that silver could be “one of the most underpriced inflation hedges in the current cycle.”
Analysts Raise Forecasts
Below is a snapshot of mid-2025 silver forecasts from key institutions:
| Institution | Forecast | Timeframe | Key Drivers |
|---|---|---|---|
| UBS | €38 | Q2 2026 | Green tech demand, investment flows |
| Credit Suisse | €40 | End of 2025 | Physical deficit, EV growth, inflation hedge |
| Bank of America | €35–€42 | 2025–2026 | Supply crunch, solar demand |
| Deutsche Bank | €36 | Late 2025 | Weak dollar, geopolitical risk |
| Citi | €25–€28 | 2026 | Bearish; sees demand fading with global rebound |
Most analysts now see €35 as a baseline price target for silver — with €40 seen as increasingly realistic if the market deficit persists. However, like with gold, Citi remains cautious, warning that a stronger-than-expected recovery could reduce investor demand for silver as a hedge.
What Could Stall Silver’s Rise?
There are, of course, risks. A sharp economic slowdown could dent industrial silver demand, especially in manufacturing-heavy sectors like electronics and automobiles. If interest rates remain higher for longer, that could also sap momentum from precious metals.
On the supply side, any major new mining developments — particularly in Latin America — could ease the market deficit. And unlike gold, silver lacks broad central bank support, making it more dependent on private and industrial demand to sustain its price trajectory.
Conclusion: €40 Silver in Sight?
The silver market is at a critical inflection point. With industrial use booming, supply increasingly constrained, and investor sentiment turning bullish, silver may be on the cusp of a major revaluation. As one strategist at BofA put it: “Silver has quietly become one of the most essential metals of the modern economy — and markets are starting to price that in.”
While volatility remains a hallmark of silver, many analysts agree: the bull case is gaining traction. €40 silver is no longer a speculative ceiling — it’s a plausible next milestone.
