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Solar Boom Powers Silver to Unprecedented Price Surge
3 Dec
Summary
- Silver has seen its best year since 1979, rising 102% in 2025.
- Industrial demand for silver, especially from solar panels, is surging.
- Analysts predict further moderate price increases for silver in the coming year.
Silver has achieved its most significant annual gains since 1979, with a 102% increase recorded in 2025. The precious metal recently retreated from a record high of $58.83 per ounce. Analysts at Commerzbank forecast a further, albeit moderate, price increase to $59 in the coming year, highlighting its strong performance.
The compelling outlook for silver is driven by robust industrial demand and limitations in increasing mined output. Demand for industrial use rose to 689.1 million ounces in 2024, with solar panels accounting for a substantial portion. Projections indicate continued growth in solar capacity, suggesting a significant boost to silver demand by 2030.
Silver's historical performance shows it has delivered higher percentage returns than gold. Its current uptrend, commencing in October 2023, has seen a remarkable 163% leap in price. This sustained rally, coupled with structural supply deficits and surging demand from sectors like renewable energy, paints a strong long-term picture for silver.
