Silver prices hold steady amid deficit and strong demand

Silver prices remained steady at around $30.8 per ounce on Thursday, staying near their highest level in seven weeks.

Silver prices hold steady amid deficit and strong demand

The market is expected to remain in a significant deficit for the fifth consecutive year in 2025, driven by strong industrial demand and retail investment, likely to offset weaker consumption in sectors like jewelry and silverware. Primary industrial uses for silver, such as solar panels, electric vehicles, and consumer electronics, continue to fuel demand. Although global silver supply is projected to increase in 2025, with higher output from China, Canada, and Chile, the ongoing deficit is expected to persist as demand continues to outpace supply.

Silver market weighs Fed and tariff risks

Meanwhile, market participants closely monitor the US Federal Reserve’s decision to hold interest rates steady and the potential implications of rising tariff threats from President Trump. These factors add uncertainty to the silver market, leaving investors to assess how geopolitical risks and monetary policies will shape silver prices in the coming months.