Silver, of which Mexico is the world’s largest producer, is entering a bullish period as analysts expect a price increase of at least 20% this year from the roughly US$30/oz it is currently trading at.
CPM Group precious metals markets expert Jeffrey Christian forecast that silver prices could be “significantly higher this year and next.”
On the group’s YouTube channel, he said: “Average silver prices rose about 20% last year. CPM Group is projecting another approximately 20% increase in silver prices over the course of 2025, and then prices somewhat higher into 2026 before they start to come off.”
Christian based the projections on various economic and political factors, but above all, on investment demand.
“Our expectation is that the economic environment may be volatile enough that we could see investors buy twice as much. So for this year and next year, as they did last year, around 150Moz. That’s… large enough investment demand to drive the silver price higher,” he said.
Trading Economics reported a silver price above US$30.10/oz on Wednesday, near its highest in more than three weeks, despite pressure from a stronger dollar and rising treasury yields.
“These moves came as strong US economic data reduced the odds of the Federal Reserve cutting interest rates further,” the firm said, adding that “silver, along with other safe-haven assets, also benefited from uncertainty ahead of US president-elect Donald Trump’s inauguration on January 20 and confusion surrounding his tariff plans.”
In addition, the price rose on hopes that China, the world’s largest metals consumer, will follow through on its promises to increase monetary and fiscal stimulus to boost economic growth.
Ana Azuara, a commodity markets specialist at Grupo Financiero Base, told BNamericas that while silver may see upward pressure this year, it would not be as pronounced as in the case of gold.
Azuara said that since silver is also a metal for industrial use, upward pressure is more limited, especially if global economic growth does not pick up or a general recession occurs, or if China’s economy does not grow despite stimulus.
“Silver can reach between US$37 and US$38 per ounce at best and could even reach US$40 per ounce in the best of cases, but that is still far from silver’s historical maximum, which is US$49.80/oz,” she said.
