re: "Silver and gold are $32.63 and $3413.80, respectively. Let's see which one gains 25% first. (Closing prices only.) My bet is on silver at $40.18, not gold at $4267.25.
De_Composed, April 21, 2025"
#msg-1263193
June 2, 2025
Silver Surges: Breaking out of Triangle Pattern to New Highs in 2025
by AJ Monte CMT
ZeroHedge.com
Silver’s breakout from a symmetrical triangle pattern often signals a strong directional move, typically bullish in this context, as it indicates a resolution of consolidation with increased momentum. Beyond this technical factor, several fundamental drivers are contributing to silver’s price surge in 2025, based on current market dynamics:
Industrial Demand Growth: Silver’s critical role in green technologies, particularly solar panels and electric vehicles (EVs), is a major driver. Solar panel production consumes 232 million ounces annually, with EVs adding 80 million ounces. The Silver Institute projects solar demand could dominate global silver reserves by 2050, with estimates suggesting 85-98% of current reserves could be used. Rising adoption of renewable energy and vehicle electrification continues to strain supply, pushing prices higher.
Persistent Supply Deficits: The silver market has faced supply deficits for five consecutive years, with a 2025 shortfall projected at 149 million ounces, down from 182 million in 2024. Declining inventories (from 400 million ounces in 2021 to 291 million by mid-2024) and reduced mining output, particularly from regions like Mexico and Russia (21% of global production), exacerbate this imbalance.
Safe-Haven Appeal Amid Geopolitical and Economic Uncertainty: Geopolitical tensions, such as U.S. tariff policies under President Trump and ongoing conflicts in the Middle East, are driving investors toward safe-haven assets like silver. Economic uncertainties, including fears of a potential recession and persistent inflation, enhance silver’s appeal as a hedge. The gold-to-silver ratio, currently around 1:92, suggests silver is undervalued compared to gold, which has hit $3,000 per ounce, encouraging investor interest.
Monetary Policy and Inflation Expectations: Expectations of U.S. Federal Reserve rate cuts in 2025 lower the opportunity cost of holding non-yielding assets like silver. Rising inflation expectations, tracked by indicators like the TIP ETF, are positively correlated with silver prices. A weaker U.S. dollar, often resulting from lower rates, makes silver more affordable for foreign buyers, further supporting price gains.
Speculative and Investment Demand: Retail and institutional interest is growing, with silver EFT investments rising and social media-driven movements like the “Silver Squeeze 2.0” encouraging physical buying to pressure short sellers. Posts on X highlight sentiment around silver breaking $35 per ounce and potential for new all-time highs above $50, reflecting speculative momentum. Central banks, like Russia’s, are reportedly accumulating silver, adding to demand.
Gold’s Influence: Silver often follows gold’s price trajectory but with higher volatility. Gold’s record-breaking rally above $3,000 per ounce in 2025 is pulling silver higher, as investors seek a more affordable precious metal with similar safe-haven qualities. A potential decline in the gold-to-silver ratio (historically averaging 60:1) could further amplify silver’s gains.
Price Outlook
I’m going to make a bold forecast for all the silver bugs out there: If we break out over the October 2024 highs ($31.80), on higher volume, we could see the iShares Silver Trust ETF (SLV) make a run to test the highs from April 2011 ($48.35). Technical traders will see this as a major resistance level, so I would expect to see a pullback from there. However, I’m not expecting a major pullback, as SLV could consolidate within a well-defined trading range before it takes out the all-time highs. After that….the sky is the limit. No doubt this is going to be an exciting time for silver traders and investors. Buckle Up.
http://www.zerohedge.com/news/2025-06-02/silver-surges-breaking-out-triangle-pattern-new-heights-2025
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