​​What's driving silver's price rally in 2025?​

​​​Recent silver price performance and key drivers

​Spot silver has demonstrated impressive performance in 2025, trading around $34.10 per ounce as of 18 March. This represents a significant year-to-date increase of approximately 14%, outpacing many other commodities and attracting increased attention from traders and investors alike.

​The precious metal's rally has developed steadily throughout the year, with several pushes higher followed by periods of consolidation. This pattern suggests sustainable momentum rather than speculative excess, potentially indicating further upside if current supportive factors remain in place.

​Several key catalysts have been driving silver's upward trajectory. The most prominent among these is the record-breaking rally in gold prices, which have surpassed the psychologically important $3000 per ounce threshold for the first time in history.

Additionally, persistent geopolitical tensions and economic uncertainties have reinforced silver's appeal as a safe-haven asset. Alongside this, industrial demand continues to provide fundamental support for prices due to silver's essential role in electronics manufacturing and renewable energy technologies.

Gold's record run and its influence on silver prices

Gold has experienced an extraordinary bull run in 2025, breaking through the $3000 per ounce barrier and establishing new all-time highs. This remarkable performance has had significant spillover effects on silver due to the strong historical correlation between the two precious metals.

Traders often refer to silver as "poor man's gold," reflecting its traditionally lower price point while offering similar diversification and safe-haven benefits. When gold prices rise substantially, silver typically follows, often with amplified percentage gains due to its smaller market size and greater price volatility.

​The gold-to-silver ratio, a key metric watched by precious metals traders, has been gradually declining from its peak of around 90:1 in recent years. Currently sitting closer to 88:1, this ratio remains historically elevated, suggesting that silver may have potential for further outperformance relative to gold if the ratio reverts toward its long-term average.

​Investors seeking exposure to precious metals but deterred by gold's high price point have increasingly turned to silver trading, providing additional price support. This dynamic creates a self-reinforcing cycle where silver's relative affordability attracts capital that might otherwise have flowed into gold markets.

Safe-haven demand amid global uncertainties

​The continuing appeal of silver as a safe-haven asset has been bolstered by persistent geopolitical tensions and economic uncertainties throughout 2025. In times of market stress, investors typically increase their allocations to precious metals as a hedge against currency devaluation and financial market turbulence.

Central bank policies have remained accommodative despite concerns about inflation, creating an environment where real interest rates (nominal rates minus inflation) have stayed relatively low or negative. This scenario traditionally benefits non-yielding assets like silver and gold, as the opportunity cost of holding them decreases.

Silver's dual role as both a precious and industrial metal gives it unique characteristics as a safe-haven asset. Unlike gold, which is primarily valued for investment and jewellery, silver's extensive industrial applications provide an additional demand floor that can limit downside during economic expansions when traditional safe-haven demand might wane.

Investors seeking to diversify their portfolios against inflation risks and currency depreciation have found silver trading increasingly attractive. This diversification benefit has contributed significantly to the metal's price performance in 2025 as portfolio managers reassess risk exposures.

Industrial demand driving fundamental strength

​Silver's extensive industrial applications continue to underpin its fundamental demand outlook, distinguishing it from purely monetary metals like gold. The metal plays a crucial role in various high-tech and green energy applications due to its exceptional electrical conductivity, thermal properties, and reflectivity.

​The renewable energy sector represents a particularly significant source of silver demand. Photovoltaic solar panels use substantial amounts of silver in their production, with each panel containing approximately 20 grams of the metal. As global solar installation continues to accelerate, this represents a structural growth driver for silver demand.

​Electronics manufacturing also remains a key consumer of silver, with applications ranging from smartphones and tablets to automotive electronic systems. The ongoing electrification of transportation and expansion of 5G networks has further increased silver usage in these sectors during 2025.

​The medical industry provides another source of growing demand, as silver's antimicrobial properties make it valuable in various healthcare applications. From wound dressings to medical device coatings, silver's unique characteristics have supported consistent demand from this sector, contributing to the metal's overall price strength.

Technical outlook and price projections

From a technical perspective, silver is approaching significant resistance levels between $34.87 and $35.40 per ounce. These price points have historical significance and may present challenges to immediate further upside, potentially triggering profit-taking among short-term traders.

The Relative Strength Index (RSI) for silver has moved into moderately overbought territory on daily charts, suggesting the possibility of a short-term consolidation or pullback. However, the weekly RSI remains in neutral territory, indicating that the broader uptrend remains intact despite potential near-term volatility.

Support levels have been established around $32.50 and $31.20, which correspond to previous resistance zones that have now become support following the recent breakout. These levels may provide buying opportunities on pullbacks for traders looking to establish or add to long positions.

Several technical analysts have projected that if silver successfully breaks through the $35.40 resistance level on sustained volume, the next target could be the $38-40 range by mid-2025. However, traders should implement proper risk management given the metal's tendency for volatility and sharp price movements.

Factors to watch that could influence silver prices

Federal Reserve (Fed) policy decisions remain a critical factor for precious metals traders to monitor. Any shifts in interest rate expectations or changes to the Fed's balance sheet reduction programme could significantly impact silver prices in the coming months.

Inflation data will continue to influence silver's appeal as an inflation hedge. If inflation proves more persistent than expected, this could enhance silver's attractiveness and potentially drive further price gains as investors seek to protect purchasing power.

The strength or weakness of the US dollar will play a crucial role in determining silver's price trajectory. Since silver, like most commodities, is priced in dollars, any substantial dollar depreciation typically supports higher silver prices by making the metal less expensive for buyers using other currencies.

Industrial demand indicators, particularly from the solar and electronics sectors, warrant close attention. Any significant changes in manufacturing output or policy shifts affecting renewable energy deployment could influence silver's industrial demand outlook and, consequently, its price performance.

How to trade silver with IG

1. ​Do your research on silver market conditions, including both technical and fundamental analysis of price drivers and potential future scenarios.
2. ​Choose whether you want to trade or invest based on your time horizon, risk tolerance, and market outlook.
3. ​Open an account with us to access our comprehensive suite of trading tools and market analysis.
4. ​Search for silver markets in our platform or app, where you can trade silver through various instruments including spot silver, futures, or silver mining shares.
5. ​Place your trade, ensuring you implement appropriate risk management strategies including stop losses and appropriate position sizing.

​Silver's volatility can present both opportunities and risks for traders. Our spread betting and CFD trading accounts allow you to take positions on both rising and falling prices, giving you flexibility regardless of market direction.

​For those preferring physical exposure, our share dealing service provides access to silver mining companies and ETFs that track silver prices, offering alternative ways to gain exposure to the precious metal's performance.

​Developing a thorough understanding of the factors affecting silver prices will improve your trading decisions. Our comprehensive market analysis and trading signals can help you stay informed about important developments in the silver market.