Is Silver the Next Big Trade?

Silver gained 7.85% in June 2025 and appreciated approximately 24.5% over this year, leading to speculations about whether it’s the next best-performing metal after gold. Similar to gold, silver is a safe-haven asset correlating with geopolitical uncertainties and has delivered strong performance during the first half of 2025, we predict further appreciation in the upcoming quarters.

Key Drivers -

1.      Increased demand for silver in industrial purposes, renewable energy and electrical conductivity - This industry has been outperforming the market due to the increase in demand and renewable energy adoption surging for a cleaner environment, each solar panel requires 20 grams of silver while manufacturing. Automotives - In the electrification of powertrains, each EV requires 25-50 grams of silver.
2.      Ongoing tensions and geopolitical uncertainties with top silver-producing countries (Mexico, China, Peru, Russia)
3.      Supply deficits

During Q1 2025, silver was trading at roughly $28 and is now at $36, indicating strong performance, interestingly the last time it crossed the $36 mark was in 2012. We also see financial institutions taking a bullish stance on silver
- Citigroup projects silver to reach $40 by year-end.
- JP Morgan expects prices around $38 by the same time.

While taking into consideration the geopolitical tensions and tariffs, we overall expect silver to perform strongly in the upcoming quarters and are extremely bullish, standing with the market consensus of $80 by 2030.