Silver, colloquially referred to as the ‘Devil’s metal’ due to its unpredictability, has hit all-time highs this year and is projected to continue its upward trajectory despite a tightening supply, according to analysts.
The metal’s price growth has paralleled that of gold, which has also experienced a surge, with the cost climbing above $4,000 per ounce this year.
Silver achieved a historic high of $54.47 per troy ounce in mid-October, representing a 71% increase from last year. It has since retraced some gains, but is currently on the rise again, despite low supply levels.
“Some individuals were forced to fly silver rather than shipping it by cargo to fulfill delivery demands,” Paul Syms, head of EMEA ETF Fixed Income and commodity product management at Invesco, remarked to CNBC.
“While we’ve seen a rapid increase, we’ve also observed a slight decrease in price. Longer term, the dynamics this time could sustain silver at relatively elevated prices, maybe even leading to further increases in the near future,” he continued.
October marked only the third instance in the last 50 years that silver prices peaked. Previous peaks include January 1980, when the Hunt brothers held a third of the global supply while trying to monopolize the market, and 2011, during the U.S. debt ceiling crisis, when both silver and gold were viewed as safe haven investments.
“Silver’s market size is roughly one-tenth that of gold, and this short squeeze certainly surprised a number of investors,” stated Syms.
In contrast to prior investment trends, the silver surge in 2025 has been fueled by a combination of declining supply and surging demand from India, alongside industrial utilization and tariffs.
“Post-Liberation Day, gold prices surged, but silver actually dipped slightly. The gold-silver ratio spiked to over 100,” Syms noted, referencing the ratio that indicates how many ounces of silver are needed to purchase a single ounce of gold.
A low ratio signifies gold is relatively inexpensive, while a high ratio suggests silver is undervalued and likely to appreciate. In April, the ratio hit a record level.
“Risk managers in financial and industrial sectors were reluctant to allow any metal to leave the States for fear it might return at a 35% premium,” shared Rhona O’Connell, head of market analysis EMEA and Asia at Stone X.
As autumn approached, silver reached its peak demand period, particularly as India completed its monsoon and harvest seasons.
“Farmers typically don’t have high regard for banks, so gold and more recently silver, are the first choices when they finish their harvest,” O’Connell remarked.
India is also the largest global consumer of silver, utilizing roughly 4,000 metric tons annually, predominantly for jewelry, utensils, and decorative items.
The allure of silver this autumn also coincides with Diwali, a five-day ‘Festival of Lights’ that celebrates wealth and good fortune, being India’s most significant public holiday.
Supply crunch
While gold usually enjoys popularity, this year silver — a more accessible investment in a nation where about 55% of the populace relies on agriculture — has outshone other precious metals.
On Oct. 17, India’s silver price spiked significantly, reaching a record high of 170,415 rupees per kilogram — an 85% increase since the beginning of the year.
Nonetheless, 80% of India’s silver supply is imported. While the UAE and China are increasingly meeting this demand, the U.K. has traditionally been India’s main silver supplier.
However, London’s vaults have been depleting rapidly in recent years. In June 2022, the London Bullion Market Association stored 31,023 metric tons of silver. By March 2025, that number had decreased by about a third to 22,126 metric tons — the lowest levels recorded in years.
“What isn’t readily visible to people is the situation within the vaults,” stated O’Connell. “It reached a point where essentially no metal was available in London.”
In October, the market was so tight that traders encountered significantly higher borrowing costs – or lease rates – to settle their positions.
“At one point, overnight borrowing was costing 200% on an annualized basis, resulting in considerable stress for many traders,” O’Connell noted.
Supply remains a persistent challenge for silver, aligning with other precious and rare metals. The Silver Institute’s 2025 World Silver Survey predicts a decline in mine production over the last decade, particularly in Central and South America.
“Over the past year or so, the underlying surplus has begun to shift into a deficit due to three factors: the electrification of vehicle fleets, advancements in artificial intelligence, and the demand for photovoltaics,” remarked O’Connell.
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“Currently, a standard electric vehicle contains about 25 grams of silver, with larger EVs possibly having 50 grams as part of their components,” explained Syms.
“Transitioning to solid-state silver batteries in the future may require around a kilo or more of silver per electric vehicle,” he added.
Given silver’s superior thermal and electrical conductivity compared to other metals, as well as the rising needs for EVs, AI, and renewable energy sources, the metal’s value will likely continue to shine.
“Silver bridges the gap between precious and industrial metals, and with technology advancing — including batteries and solar panels — it has some excellent applications as we move towards a more electrified future,” asserted Syms.
