Silver prices have risen significantly recently, increasing investor interest. This increase is linked to rising demand, widespread industrial use, and global economic factors. This surge in silver prices makes it an attractive investment choice.
Redaksiya reports that last week, silver prices rose by more than 10%, gaining 13.5% compared to the end of November and over 120% compared to the end of 2024. Due to supply concerns, investor demand, and intensive industrial use, the price of an ounce of silver reached a record high of $64.6 last week.
The US is expected to release its study on critical minerals in the coming weeks as part of the "Section 232" implementation, and this study is projected to indicate tariffs on other products traded in commodity markets, including silver. On the other hand, forecasts that the US Federal Reserve (Fed) will conclude the year with 3 interest rate cuts and that interest rate cuts will continue next year are among the important factors supporting silver prices. National Pension System funds in the country will allocate 1% of their assets to approved gold and silver ETFs. China also allowed insurance companies to allocate 1% of their assets to gold at the beginning of the year. In recent months, a large silver reserve has been built up in the US due to concerns that the US might impose potential tariffs on silver, and this situation has further exacerbated the global silver shortage. Silver, like gold, has a safe-haven characteristic during periods of geopolitical tension or financial instability, and it is also distinguished by its industrial use. The US including silver in its list of critical minerals this year also stimulated the rise in silver prices. Meanwhile, the country already ranks among the leading silver producers. The Indian pension regulator's decision to allow gold and silver investments for the first time also affected the rise in precious metals, especially silver. Unlike gold, silver is mainly produced as a by-product of other minerals, so miners have not been able to easily meet the increased demand in recent years. In addition to its use in jewelry and coins, silver also sees intensive demand in industrial applications such as electronics and solar panels.