Silver Market Recap: Q2 2025 HighlightsSilverOANDA:XAGUSDjuliakhandoshkoSilver prices hit a 14-year peak in Q2 of 25 due to global uncertainties and a tight supply-demand balance. Although it shares some similar drivers with gold, silver has carved its own path, which one charged by robust industrial demand and its safe-haven appeal amid economic and geopolitical turbulence. Silver’s Price Journey The quarter kicked off with a dip, silver fell from $33.77 per ounce on April 2 to $29.57 by April 4. But then, it quickly regained traction, crossing $30 by April 9 and peaking at $33.63 on April 23. May brought volatility, with prices swinging between $32.05 on May 2 and $33.46 on May 23. June marked a turning point: silver surging to $36.76 by June 9 and reaching a year-to-date high of $37.12 on June 17. By the quarter’s end, prices stabilized between $36 and $37, holding strong into July. Supply Squeeze Meets Rising Demand Silver’s rally was underpinned by a persistent supply deficit. The Silver Institute’s World Silver Survey (April 16, 2025) reported record demand of 680.5 million ounces in 2024, driven by industries like solar energy, artificial intelligence, and electric vehicles. Meanwhile, mine production lagged, creating a 148.9-million-ounce shortfall-the fourth consecutive year of deficits. Some experts may say that we’re seeing flat supply and demand outpacing it by nearly 20%. Aboveground stockpiles have dwindled by 800 million ounces over four years-equivalent to a full year’s mine output. They call it a “perfect storm” for silver’s price trajectory. Geopolitical and Economic Catalysts Global tensions are having a very noticeable impact on the dynamics of silver. Escalating conflicts, including Israel’s June 12 and June 21 strikes on Iranian nuclear sites, heightened fears of disrupted trade and energy flows, just boosting this way silver’s safe-haven appeal. Meanwhile, the BRICS bloc’s push to reduce reliance on the U.S. dollar, including Russia’s proposal for a precious metals exchange, added further momentum. U.S. trade policies, particularly President Trump’s fluctuating tariffs, introduced volatility. The April 2 “Liberation Day” tariff announcement sparked fears of a recession, briefly pushing silver prices down due to its industrial exposure. I guess that any recession-driven dip would be short-lived, with silver buoyed by broader precious metals strength and a weaker U.S. dollar. Industrial Demand in the Spotlight Unlike gold, silver’s industrial role amplified its price movements. Its use in photovoltaics, military components, and energy infrastructure has surged, with national security priorities in the U.S. and elsewhere driving demand. Economist Dr. Nomi Prins states the following: “Silver’s industrial applications-especially in energy and defense-are outpacing supply. Geopolitical shifts are cementing its role beyond a traditional safe-haven asset.” What’s Next for Silver? Looking ahead, analysts remain optimistic. Some predicts, that silver will hold above $35, potentially reaching $40 by year-end, with a stronger dollar as a possible headwind. Speaking about long-term, they see the gold-silver ratio (currently 92:1, compared to a 50-year average of 60:1) narrowing to 40:1 or lower, potentially pushing silver past $100 per ounce in the next few years. Although a global recession could temper industrial demand, safe-haven buying and ongoing supply constraints are expected to provide support. Geopolitical tensions and trade disputes, particularly between the U.S. and China, are unlikely to fade, which will only increase the attractiveness of silver. Silver's performance reflects the dynamic interplay between industrial demand, supply shortages, and global uncertainties. With favorable fundamentals and geopolitical conditions, silver is poised for continued strength in the second half of 2025, assuming recession risks remain manageable.