Silver price future trend analysis: Is a strong upward cycle expected?

Market Outlook: Why Investors Are Bullish on Silver

The silver market has recently attracted widespread attention, with numerous analysts and investment experts expressing bullish views. As of August 2025, silver trading prices hover around $38 per ounce, up approximately 41% from last year, with a year-to-date increase of about 28%. This performance is close to the price levels from 13 years ago and has broken through the key resistance level of $36.

Core factors driving market optimism include: global economic growth boosting industrial demand, persistent inflation increasing the appeal of safe-haven assets, and some market participants predicting the upcoming “super cycle” of commodities. The so-called super cycle refers to a prolonged period of rising raw material prices driven by strong global demand and constrained supply. Inflation’s impact on commodity prices is particularly profound—rising prices diminish currency purchasing power, prompting investors to seek precious metals like gold and silver as asset protection.

However, investors should remain vigilant. The current economic environment carries recession risks, and factors such as trade policy adjustments could slow economic growth and weaken commodity demand. Despite these challenges, most market participants still believe that under inflationary pressures, silver has significant upside potential.

Review of Silver Price Trends and Key Milestones

Long-term chart from 1971 to present

In 1971, the United States abandoned the gold standard, a decision that profoundly affected the global economic landscape and precious metals markets. Since then, silver prices have shown a long-term upward trend, despite periods of significant volatility, overall moving higher. This upward momentum is expected to continue in the coming years, driven by inflationary pressures and industrial demand growth.

A key reason for silver’s sustained rise is its role as an inflation hedge. As central banks worldwide continue to inject liquidity, inflationary pressures remain difficult to contain. Silver, with its long history as a store of value, is viewed as a safe-haven asset during economic uncertainty, helping to preserve investors’ wealth.

Two historic peaks

1980 Hunt Brothers Event

In the late 1970s, brothers Nelson Bunker Hunt and William Herbert Hunt attempted to monopolize the global silver market by accumulating large quantities of physical silver. This move caused silver prices to soar to a historic high of $48.70 per ounce in January 1980. Ultimately, their plan failed, and they were forced to sell silver positions at a loss. This market manipulation became a classic lesson in financial history, highlighting the need for regulation.

Volatility in 2010-2011

In 2010, JPMorgan Chase faced controversy over allegations of manipulating silver futures prices. It was claimed that the bank built large futures positions to push prices higher, then closed them out, causing prices to plummet and profiting from the decline. These allegations and subsequent fines spurred financial regulatory reforms. The enactment of the Dodd-Frank Act further strengthened oversight of financial institutions to prevent similar manipulations. During this period, silver markets experienced intense volatility, which also contributed to price increases.

Current Market Data and Expert Opinions

Real-time price dynamics

Since 2021, silver has mostly traded within the $20-$25 per ounce range. Starting from January 2024, the trend shifted upward, with silver entering an ascending channel. It has repeatedly approached the $40 key level, with current trading around $38. This movement has boosted investor confidence, with many believing it signals the beginning of a larger rally.

Forecasts for 2025 and beyond

Short-term expectations (2025):

• InvestingHaven: projected to reach $49 within the year
• CAPEX.com: possibly surpassing $40 in Q3
• GoldSilver: target of $40 by year-end

Medium to long-term expectations:

• Benzinga reports some investors forecast an average price of $70.33 in 2026, $102.19 in 2027, $148.49 in 2028, $213.69 in 2029, and possibly $307.45 in 2030
• First Majestic CEO Keith Neumeyer remains bullish on silver, expecting future prices in the $100-$130 range

While these forecasts should be approached with caution, overall investor sentiment is clearly optimistic.

Supply-Demand Imbalance: A Strong Bullish Foundation

Structural market shortages strongly support the bullish outlook. The Silver Institute predicts a market deficit of approximately 118 million ounces in 2025—despite demand decreasing and supply increasing by 1.5%, this gap remains significant. The supply-demand imbalance lays the foundation for rising prices.

Main Factors Driving Silver Prices

Inflation Hedge Demand

Inflation is a core variable influencing silver prices. Like other precious metals, silver is widely regarded as an inflation-resistant asset. When prices rise, currency value declines, prompting investors to allocate assets that can preserve value. Historical data shows that silver prices tend to perform well during high inflation periods.

Industrial and Consumer Demand

Industrial applications account for a substantial portion of silver demand. Industries such as electronics, medical devices, and solar panels rely heavily on silver. Economic growth boosts industrial production, thereby increasing silver consumption. Conversely, during economic downturns, demand tends to decline.

Of particular note is the photovoltaic industry. As global energy transition accelerates, demand for solar panels surges, with silver being a critical material due to its excellent electrical conductivity. In 2024, industrial silver demand hit a record high of 680.5 million ounces, marking the fourth consecutive year of record demand. It is expected to surpass 700 million ounces for the first time in 2025, and this momentum is likely to continue.

Geopolitics and Supply Chain

Disruptions in mining operations or worsening geopolitical situations can trigger supply bottlenecks, further pushing prices higher. Investor sentiment and market trends also play important roles.

Comprehensive Guide to Silver Investment Methods

Investors interested in participating in the silver market have various options:

Physical Silver Holdings Purchase silver coins, bars, or ingots to hold physically. The advantage is owning tangible assets with inflation protection. Disadvantages include the need for secure storage (which incurs costs) and lower liquidity compared to other investment forms.

Silver Mining Stocks Invest in mining companies such as Pan American Silver, First Majestic, etc. Benefits include leverage—when silver prices rise, profits often increase more than the price itself; some companies pay dividends. Risks involve company-specific operational issues that can impact stock prices, and higher volatility.

Exchange-Traded Funds (ETFs) Such as iShares Silver Trust(SLV), Sprott Physical Silver Trust(PSLV), etc. The convenience lies in easy trading like stocks and risk diversification. Drawbacks include management fees and the need to understand the fund’s actual holdings.

Contracts for Difference (CFD)(CFD) Trade silver price movements without owning physical silver. Use leverage to control large positions with small capital, amplifying gains. However, leverage also magnifies losses, making it riskier and unsuitable for beginners.

Futures and Options Trade silver futures contracts on exchanges like COMEX or use options strategies. Advantages include controlling large quantities of silver with less capital, suitable for professionals. Risks involve complexity, expiration dates, and are not recommended for novices.

Silver Streaming and Royalty Companies Such companies provide upfront financing to miners in exchange for future production, e.g., Wheaton Precious Metals, Franco-Nevada. Benefits include avoiding direct mining risks and profiting from rising silver prices. Disadvantages include the risk of the mining companies’ difficulties affecting the streamers, and lack of control over mining operations.

Summary of Silver Prices (CHF and Other Currencies) Outlook

Overall, silver has clear upside potential but is influenced by multiple factors such as inflation, industrial demand, and geopolitics. Short-term volatility is possible, but the long-term outlook remains positive. Silver prices denominated in CHF or other currencies will also reflect this trend.

Investors should conduct thorough research, assess their risk tolerance, and consider consulting licensed financial advisors before making decisions. Choosing the most suitable silver investment tools based on individual circumstances is crucial. Opportunities and risks coexist in the market—rational analysis is the best approach.