Silver Soars to Unprecedented Highs

The price of silver has surged beyond $64 per ounce, setting a new all-time record. With gains exceeding 100% in 2025, the metal's performance is outpacing even that of gold. This remarkable ascent is fueled by a powerful combination of structural supply shortages, booming industrial consumption, and a shift in monetary policy from the U.S. Federal Reserve.

A technological revolution is driving consumption to unprecedented levels. The solar power sector has emerged as the single largest industrial consumer, with its share of industrial silver demand skyrocketing from 11% in 2014 to 29% in 2024. This growth trajectory shows no signs of slowing.

Electric vehicles require up to 79% more silver than traditional internal combustion engines. Furthermore, the expansion of data centers and artificial intelligence infrastructure is creating additional demand. Silver's superior electrical and thermal conductivity renders it indispensable for manufacturers. For producers of solar panels, consumer electronics, and EVs, a supply disruption is not an option.

A Physical Market in Deficit

The global silver market is heading for its fifth consecutive annual supply shortfall. Analysts project a deficit between 117 and 125 million ounces for 2025. Since 2021, the cumulative deficit has reached nearly 800 million ounces. While annual mine production remains stagnant at approximately 813 million ounces, demand continues to grow unabated.

Inventories held in London vaults have dropped to their lowest point since 2015. Concurrently, rising lease rates indicate genuine stress in securing physical metal. Arbitrage activity diverting silver to the United States is exacerbating the global tightness.

Should investors sell immediately? Or is it worth buying Silber Preis?

Major Banks Revise Forecasts Upward

Institutional analysts are raising their price targets in response to these market dynamics. Bank of America has established a 12-month target of $65. BNP Paribas suggests a move to $100 by the end of 2026 could be possible. Their rationale centers on the persistent structural deficit, robust industrial offtake, and consistent inflows into exchange-traded funds (ETFs), which are keeping the market tight. Any price pullbacks are likely to be viewed as buying opportunities.

The gold-to-silver ratio has declined to 67, nearing its historical average of 66 since 1971. However, during previous major bull cycles for silver, this ratio has fallen below 40, indicating significant potential for further outperformance against gold.

Key Market Metrics:
- Fifth consecutive year with a supply deficit exceeding 100 million ounces
- ETF holdings have increased by 18% to 844 million ounces
- The gold-silver ratio has fallen to 67, its lowest level since 2021

Overbought Conditions Signal Caution

From a technical perspective, the monthly Relative Strength Index (RSI) reading above 80 indicates one of the most overbought conditions witnessed in 45 years. Similar extreme readings in 1980 and 2011 were followed by substantial corrections. Near-term support is seen at $62.80, with a deeper floor around $60. A sustained break above $64 opens the path toward $68.

Despite overbought signals, the fundamental backdrop remains supportive. Falling real interest rates, a softer U.S. dollar, and ongoing geopolitical tensions continue to bolster the precious metals sector. Regulatory changes are also providing tailwinds: India recently permitted pension funds to invest in silver ETFs, and China's announcement of strict export controls effective in 2026 has already triggered stockpiling. The current price of $64.84 marks a 52-week high, with the next significant technical hurdle waiting at $68.