Commerzbank stated in a note that they expect a further, albeit moderate, price increase to $59 in the coming year.
Silver is outperforming gold in generating returns to investors and perhaps has a more compelling long-term outlook given a structural supply deficit and surging demand from renewable technologies such as solar panels.
Spot silver has been in a sustained uptrend since October 2023, leaping by 163 per cent from a low of $20.67 an ounce on October 3 of that year to a record high of $54.38 on November 13.
Silver also has a track record of delivering higher percentage returns than gold, with a rally of 431 per cent between October 2008 to a then-record high of $48.24 an ounce on April 27, 2011.
Silver Price Rising Due To Solar Surge
The more compelling bullish case for silver lies with increasing industrial demand and limited scope to boost mined output. Industrial demand rose to 689.1 million ounces in 2024 from 644 million the prior year, according to LSEG data.
Of this, 243.7 million ounces was for use in solar panels, up from 191.8 million the prior year and up 158 per cent from the 94.4 million in 2020. Global solar capacity additions were about 600 gigawatts (GW) in 2024, and are expected to rise to close to 1,000 GW by 2030.
The International Energy Agency expects 4,000 GW of new solar capacity will be installed from 2024 to 2030. This suggests that solar alone is going to drive silver demand higher by close to 150 million ounces a year by 2030, which would represent an additional 13 per cent on top of the 2024 physical demand of 1.169 billion ounces.
FAQs
Q1. How has Silver performed?
A1. Spot silver has been in a sustained uptrend since October 2023, leaping by 163 per cent from a low of $20.67 an ounce on October 3 of that year to a record high of $54.38 on November 13.
Q2. What is silver price prediction?
A2. Commerzbank stated in a note that they expect a further, albeit moderate, price increase to $59 in the coming year.