The quickly rising cost of silver - why is silver getting more expensive?
Silver, which was once widely regarded as a more affordable and lesser-valued alternative to gold, has rapidly increased in worth over a short period. In just a matter of a few months, its price surged dramatically, reaching the highest level recorded in more than ten years. This significant rise has been largely fueled by growing investment interest as well as increased demand from various industrial applications.
Silver is not used exclusively for jewellery it is in high demand in several industries.
Industrial Demand: The Backbone of Silver
Silver is vital for the net zero economy. Its uses span electronics, renewable energy, and healthcare, keeping industrial demand strong:
Electronics and Communication: Silver’s excellent conductivity makes it essential for circuit boards and electronic parts.
Solar Panels and Renewable Energy: The clean energy movement boosts silver demand, as its efficiency is key for solar panels.
Healthcare and Green Technologies: Silver fights germs in medical devices. It also helps new green technologies. This makes silver vital in fast-growing sectors.
Countries like Mexico, Peru, and Australia are key suppliers. Any disruptions in their output could tighten the global market further.
Additionally, silver markets are experiencing ongoing supply deficits, now in their fifth consecutive year, which underpin price support.
These combined factors—robust industrial demand, a tight supply situation, strong safe-haven buying amid geopolitical and economic uncertainty, and supportive Federal Reserve policy expectations—have propelled silver’s price rally in 2025, driving it toward multi-year highs.
Silver Price Prediction 2025-2026
Silver price started in 2025 at $29.29. Today, Silver traded at $50.39, so the price increased by 72% from the beginning of the year.
The predicted Silver price at the end of 2025 is $51.87 - and the year to year change +77%.
As the price of silver continues to rise, we find it necessary to adjust our prices accordingly. This increase means that the cost of materials will be higher throughout 2025 and into 2026. Consequently, these elevated expenses will impact you as valued students of the M.A.M.A., reflecting the changing market conditions.