Silver at Over 14-Year High
Silver rose past $45 per ounce on Friday to 14 year highs as expectations of lower real interest rates and tightening physical availability collided.
The latest PCE report showed inflationary pressures remained stable and reinforced the view that the Fed has room to cut rates further this year, with markets pricing another move in coming months which reduced the carrying cost of non yielding assets and lifted demand for precious metals.
Industrial consumption remains robust with solar electric vehicle and electronics fabrication driving total industrial use above 700 Moz and still rising. Supply cannot keep pace because most silver is produced as a byproduct of copper lead and zinc mining so output only edged higher in 2025 to roughly 844 Moz and failed to erase a large structural deficit.
The Silver Institute forecasts a fifth consecutive annual shortfall in 2025 with demand exceeding supply by more than 100 Moz and inventories drawing down.
Source: Trading Economics
