In a world of volatile markets and rising geopolitical and economic risks, the search for the most profitable and safest investments continues to dominate business discussions. While gold and cryptocurrencies like Bitcoin have stolen the spotlight in recent years, a new star is emerging on the investment horizon: silver.

Unprecedented Price Surges

Silver prices have been on a powerful upward trajectory in recent years, soaring by 130% in three years—from $19 to $39 per ounce. In 2024 alone, silver gained 21%, while gold jumped 43%. Since the start of 2025, silver has climbed another 34%, reaching its highest level in 14 years, not seen since 2011—outperforming both Bitcoin and the S&P 500 index.

Drivers Behind the Rally

Several key factors are fueling silver’s sustained rise:

- Industrial demand: Roughly half of global silver output is used in heavy industry and advanced technology, particularly electronics, batteries, and solar panels.

- A weaker dollar: This boosts returns on precious metals.

- Rising investor appetite: Silver is increasingly seen as a safe haven amid global uncertainty.

- Supply shortage: In 2024, global silver production stood at 820 million ounces against consumption of 1.22 billion ounces, creating a deep market deficit.

Optimistic Forecasts

HSBC recently raised its silver price outlook for 2025 and beyond, citing continued demand for safe-haven assets. Citigroup also forecast that silver could surpass $40 per ounce in the coming months, driven by tight supply and growing industrial and investment demand.

“Silver is experiencing what can be described as a rediscovery of its economic and investment role,” economist Dr. Mohammad Moussa told Al-Safa News. “The clear imbalance between supply and demand—820 million ounces produced in 2024 against consumption of 1.22 billion—creates a structural deficit favoring higher prices. With the dollar weakening and silver’s use expanding in technology, solar energy, and electronics, we expect it to break the $40 mark within the next 12 months.”

Silver and Gold: Rivalry and Complementarity

While gold remains the ultimate benchmark for investors, silver is emerging as a smart, more affordable alternative—especially for individual investors priced out of gold. However, silver’s performance is more volatile, as it is tied more closely to industrial demand and economic health. Its price swings are often double or triple those of gold.

Outlook for the Second Half of 2025

The momentum is expected to continue into the second half of the year, supported by trade tariffs that unsettle markets, robust demand for precious metals, and a weaker global dollar. Silver is also poised to play a larger role in the Fourth Industrial Revolution, with its expanding applications in industry, technology, and medicine.

Today, silver is no longer just an industrial metal but a strategic investment tool of growing importance. As global economic challenges persist, silver seems set to solidify its place as a winning option in diversified portfolios—and may well cross the $40-per-ounce threshold in less than a year.