Silver prices surged above $36 per ounce on Monday, marking their highest levels in over 13 years, as persistent safe-haven demand and tightening supply conditions continued to buoy the market.
Silver hovers at 13-year high
The rally reflects heightened investor caution amid mounting global economic and trade uncertainties, particularly ahead of a new round of US-China trade talks set to take place in London. Market participants remained wary after May’s Chinese trade data fell short of expectations—exports grew less than forecast, and imports dropped sharply, particularly shipments to the United States—highlighting the lingering strain on global trade flows and weakening demand across major economies.
Silver also found additional support from a rotation within the precious metals space. As gold prices showed signs of consolidation following a multi-month rally, some investors turned to silver as a relatively undervalued alternative with both safe-haven and industrial attributes. Analysts noted that the gold-to-silver ratio—often used to assess relative value—has narrowed, signaling growing momentum behind silver’s recent outperformance.
In addition to its monetary appeal, silver’s industrial demand remains a critical pillar of strength. The metal plays a vital role in high-growth sectors such as solar energy, where it is used in photovoltaic cells, as well as in electronics, automotive components, and green technologies. This dual nature of silver—as both an investment and industrial commodity—has helped sustain demand even amid broader market volatility.
Silver Institute demand figures
According to the Silver Institute, global silver supply in 2024 was approximately 15% below demand, driven by declining mine output and limited recycling activity. That structural deficit is expected to persist into 2025, further tightening the market and adding upward pressure to prices. Mining disruptions in Latin America and regulatory hurdles in several key producing nations have also contributed to the constrained supply picture.
Looking ahead, analysts suggest that silver could maintain its bullish trajectory if geopolitical risks remain elevated and industrial demand continues to expand, particularly in clean energy technologies. However, the path forward may still be volatile, as markets digest macroeconomic data, central bank signals on interest rates, and the outcome of trade negotiations between Washington and Beijing. For now, silver appears to be benefiting from a unique confluence of safe-haven flows, favorable supply-demand dynamics, and investor rotation within the commodities complex.
