Behind Silver's Surge, a Deficit Begins to Haunt the Market
Silver prices continued to climb on Friday, November 14, 2025, and moved within the range of USD 52-53 per troy ounce. Silver rose around 1.2% to USD 52.95 per ounce and was on track for a weekly gain of nearly 10%. This marked one of the best weeks of the year and brought prices back near the record level touched last October. This increase occurred in line with the weakening US dollar and strong investor interest in safe-haven assets following the end of the lengthy US government shutdown.
In terms of sentiment, the market is still awaiting a clear direction on the Fed's interest rate policy. Recent comments from Fed officials have sounded more cautious, but persistently low real interest rates and uncertain economic data make precious metals, including silver, attractive. Many market participants view this year's sharp rise as a mix of speculation and the need to hedge against inflation, high debt, and the uncertainty of US economic data following the shutdown.
Beyond daily movements, the big story for silver lies in its long-term fundamentals. Several industry reports predict the silver market will enter its fifth consecutive year in deficit, meaning demand exceeds supply. Strong demand comes from solar panels, electric vehicles, and the technology industry, while production is not growing as rapidly. At the same time, capital flows into silver-based investment products have increased, helping push prices to high levels. This combination of its safe haven function and industrial demand is what makes many investors view silver's long-term trend as still attractive, even though its movements remain volatile. (az)
Source: Newsmaker.id
