Silver Prices Surge as Industrial Demand and Supply Shortages Drive Up Market Interest
Frankfurt, 6 March 2025 – Silver prices continue to rise, capturing the attention of the markets after a year of record-breaking highs for gold. Over the past year, the price of silver has increased by an impressive 29%, with some investors achieving gains of up to 59%.
One of the key factors driving this surge in silver prices is the increasing demand for the precious metal in various industries. The electronics sector and the rapidly expanding artificial intelligence (AI) industry are among the top contributors to this demand, with the Silver Institute reporting that industrial applications currently account for 58% of global demand.
“Silver remains an essential component of modern technologies and industries, making it a valuable asset for investors,” says Christian Rauch, CEO of Degussa, a leading precious metal dealer. “With the rapid electrification of industries, the expansion of renewable energy, and the booming AI hardware market, the demand for silver is expected to continue to rise.”
Aside from its industrial applications, silver is also gaining popularity as an investment asset, particularly among retail investors. Its lower price compared to gold makes it more accessible to investors with smaller budgets, making it an attractive option for those looking to build wealth.
Analysts predict that silver prices will continue to increase this year, with the potential to reach $35 per troy ounce. However, the supply outlook for silver may struggle to keep up with this demand, leading to a potential shortage. Experts warn that insufficient investment in new mining projects is creating a structural deficit, which could further constrain supply.
In addition, above-ground reserves of silver are depleting, with a significant portion being lost due to recycling inefficiencies. These factors, combined with the rising demand, are driving the market interest in silver and its potential for future price appreciation.
Another market indicator pointing towards a bullish outlook for silver is the gold-silver ratio, which measures how many ounces of silver are needed to purchase one ounce of gold. Historically, silver prices tend to rise following periods of a high gold-silver ratio. Currently, the ratio stands at 91, compared to a historical average range of 50 to 70, indicating a strong bullish signal for silver.
Investors looking to take advantage of the potential for silver price appreciation can also benefit from tax-efficient strategies. Degussa, for example, offers a Tax-Free Silver Storage option for its clients, allowing them to buy and sell silver without incurring VAT.
“Our experts at Degussa branches are always available to provide guidance on tax-efficient silver investments,” says Rauch.
In conclusion, experts and market analysts believe that silver is a compelling opportunity for investors seeking to capitalize on the next precious metals rally. With surging demand, constrained supply, and strong market indicators, silver is poised to be a winner in the years ahead.
Learn more about silver investments and strategies at www.degussa.com.
About Degussa Goldhandel
Degussa Goldhandel is a renowned provider of certified investment bars and bullion coins, offering comprehensive services for precious metal investments. With a team of approximately 220 employees, the company operates 16 branches across Germany, Switzerland, Spain, and the United Kingdom. For more information, please visit www.degussa.com.
Contact:
Degussa Holding AG
Oberneuhofstrasse 12, 6340 Baar, Switzerland
Andrea Haener
Email: presse@degussa.com
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.