Silver Price Prediction 2025: Trends, Forecasts, & Key Factors

You thought of investing in silver. Maybe you’ve heard it’s a hedge against inflation, the go-to asset for savvy Australian investors, or you just like diversifying your portfolio. But one big question still lingers: Where is the price of silver heading in 2025?

Will silver prices increase as inflation and market volatility push investors toward safe-haven assets? Or will economic shifts and industrial demand take it in a different direction?

We understand your concerns!

You don’t want to invest blindly. And with so much uncertainty in global markets, it’s wise to get a clear picture before making any moves. That’s exactly what this article is here for.

We’ll examine the latest silver price prediction, key market trends, experts' forecasts, and the primary factors affecting silver price changes. Whether you're a first-time buyer or a seasoned investor, this guide will help you make informed decisions. 

Silver Price Dynamics

History, they say, is the mirror of the future. Let’s step back and examine how silver has performed over the years. 

The Historical Performance of Silver

Historically, silver's price has experienced different highs and lows. Looking at the price over the last century, you'll see periods of explosive growth followed by drastic drops.

Here’s a closer look at the historical changes in silver prices:

 

Key Historical Patterns to Consider

If you're trying to predict silver prices in 2025, keep these historical patterns in mind:

• If inflation remains high, silver could benefit, much like it did in the 1970s and 2010s.

• When the stock market crashes, or economic uncertainty rises, silver spikes as investors seek safe-haven assets.

• Historically, silver has struggled to maintain long-term highs, often experiencing sharp pullbacks after major rallies.

What, then, are the current market trends responsible for the highs and lows in silver prices?

Current Market Trends and Their Impact on Silver Prices

As of the time of creating this article, silver is valued at A$51.26 per ounce. Down from A$51.30 as of January 30th, 2025, and up from A$35.12 one year ago. This is a 0.20% decrease from last month and 45.79% increase from one year ago.

Here are some market trends driving the recent surge in silver prices.

1. Inflation and Interest Rates

Inflation is still a concern, especially in Australia and global markets. While inflation rates have dropped slightly after the 2022 highs, ongoing geopolitical tensions, energy costs, and supply chain challenges continue to support silver as an inflation hedge.

Also, the Reserve Bank of Australia cut interest rates by a quarter point to 4.1% on February 18th, 2025.

This decrease in interest rates will favour the rise in prices of non-yielding assets like silver.

2. Industrial Demand from Green Energy and Tech

Silver is a precious metal and a key component in industries such as solar energy, 5G technology, and electric vehicles. Most importantly, as the Australian government pushes for green energy solutions, the demand for silver in photovoltaic technology (solar panels) is at an all-time high. 

In 2024, global industrial demand for silver reached 702 million ounces, a 7% increase from the previous year. On the other hand, analysts forecast silver industrial demand to increase by 3% in 2025 over 2024. 

This growing demand signals that we aren’t seeing a decline in silver prices anytime soon.

Further Reading: What is Driving Silver’s Demand? - Bullion Hub 

3. Silver Supply Constraints

The silver market has faced supply deficits for the past three years, intensifying in 2024 due to mine production challenges and heightened industrial consumption. 

Although silver supply is predicted to increase by 5% in 2025, with a 19% drop in deficit to 149 million ounces — that is still a big gap to fill.

4. Gold-to-Silver Price Ratio

Historically, the gold-to-silver price ratio fluctuates between 50:1 and 80:1, but it has remained above 80 recently. This suggests that silver may be undervalued relative to gold. If silver catches up, we could see a stronger spike in its price compared to gold in 2025.

Will the speculated increase in silver prices happen in 2025? Let’s see some experts' predictions about future silver prices.

Expert Predictions and Forecasts for Silver Prices

Silver prices remain highly debated among market analysts and investors. Below, we break down expert predictions across different timeframes:

Short-term Price Predictions for 2025

Market analysts forecast silver price to range between A$44 and A$79 per ounce, with some experts predicting even higher potential if key economic conditions persist.

Mid-term Projections: 2025 to 2028

Silver prices will continue rising in 2025-2028, primarily due to persistent supply deficits and increasing industrial demand.

Long-term Scenarios: Silver Price Predictions Beyond 2028

Most long-term forecasts do not provide exact price targets. However, analysts agree that silver will remain in high demand due to its technological applications and supply limitations.

Market Sentiment and Trader Predictions

Analysing Technical Indicators for Silver

Technical analysis involves examining historical price data, volume, and market trends to forecast future silver price movements. Australian traders often rely on:

1. Moving Averages (MA):  The 50-day and 200-day MAs help identify trends. Crossovers between these averages often signal buy or sell opportunities

Tipranks Silver Spot Australian Dollar (XAGAUD) Moving Averages as at 19/02/25

These consistent Buy signals across various moving averages suggest a strong upward trend in silver prices.

2. Relative Strength Index (RSI): Silver’s RSI is 60.82 (February 19), indicating a neutral-to-bullish sentiment. An RSI above 70 might suggest overbought conditions, while below 30 indicates oversold conditions.

3. MACD (Moving Average Convergence Divergence): Traders use MACD crossovers to gauge momentum. A bullish crossover suggests buying pressure, while a bearish crossover indicates selling pressure.

Sentiment Analysis: What Traders Are Saying

The market sentiment reflects how traders and investors feel about silver’s short- and mid-term potential. Here’s what’s trending among Australian traders:

• Bullish Sentiment: Many traders are optimistic about silver’s industrial demand, particularly in the solar energy and technology sectors. 

• Bearish Concerns: Some traders are cautious due to global economic uncertainty, including potential interest rate hikes by the Reserve Bank of Australia (RBA). 

• Social Media Insights: On platforms like TradingView and Reddit, Australian traders frequently discuss key resistance levels around A$51.11 per ounce and support levels at A$49.98 – A$51.11 per ounce.

Key Fibonacci Levels and Price Patterns

Fibonacci retracement levels and price patterns help you identify potential support and resistance areas based on previous price movements

• Recent High: A$52.17 (October 22, 2024)

• Recent Low: A$34.21 (2024 low)

Applying Fibonacci retracement:

• 38.2% Retracement: Approximately A$45.25

• 50% Retracement: Approximately A$46.03

• 61.8% Retracement: Approximately A$51.11

Currently, silver is trading above the 61.8% retracement level, indicating potential bullish momentum.

Final Thoughts

At this point, we’ve cleared all doubts that silver price isn’t declining anytime soon. 

Its growing demand across different sectors and predictions from market experts show it will be a golden asset in years to come.

Are you ready to diversify your portfolio? Check our range of investment-grade silver products and stake your ground in this precious metal.