As I previously wrote, silver was poised for a breakout. And now it’s happening.
It looks like the silver bull market has begun. In recent weeks, silver has decisively broken through two major resistance zones, $32 and $35. Now analysts say it’s likely to make a rapid run at $40 next and then $50 soon after.1
Silver just hit a 14-year high, recently trading at $39. Risk aversion, fueled by rising tariffs, U.S.–Russia tensions, and Middle East conflicts, is pushing investors toward safe-haven metals. That momentum, combined with powerful structural forces, makes silver one of the most compelling investments in the market today.
Silver Breaks Out
After trading sideways, silver prices have seen decisive bullish upside. The next immediate price objective? Analysts now say $40 with $50 in sight. Silver is finally catching up to the explosive rallies seen in gold and platinum, surging 34% since its April lows.
Why now? Several tailwinds are converging at once.
First, silver is benefiting from rising gold and copper prices. Copper, in fact, just posted its biggest one-day rally in history. It was up 13% after President Trump announced a surprise 50% tariff on copper imports. That surge in copper is filtering into silver, given the two metals’ tight industrial link.
It’s worth noting that about 70–80% of global silver production comes as a byproduct of mining other metals. Copper alone accounts for 25% of that silver supply. So, when copper becomes 50% more expensive, as it just did, industrial demand for copper drops. Therefore copper production falls. And in turn, so does silver production. The result? Increased scarcity of silver, driving its price even higher.2
A Structural Deficit
The supply–demand imbalance is already a critical factor. In 2024, the global silver market recorded a deficit of approximately 148.9 million ounces. It was driven largely by record-high industrial demand, particularly from the green technology and electronics sectors.
This marks the fourth consecutive annual deficit, with a cumulative shortfall of about 678 million ounces from 2021 through 2024. According to the Silver Institute, this structural imbalance isn’t going away anytime soon.3
On top of that, silver is both a monetary asset and an industrial commodity, unique among metals. It benefits when investors seek a safe haven, and when manufacturers ramp up production. For example, silver demand for photovoltaic (solar panel) applications alone has nearly tripled over the past four years.
Undervalued and Underowned
Despite this bullish setup, silver remains significantly undervalued compared to gold.
The gold-to-silver ratio, how many ounces of silver equal one ounce of gold, has now dropped to about 87, its lowest level since January. But the long-term historical average, dating back to 1915, is 53.
If silver simply reverted to that average without any increase in gold’s price, silver would be valued at approximately $63.30 per ounce. A 65% gain from its current price around $38.40.4
Silver’s relative underperformance compared to gold also makes it more accessible for individual investors. Analysts note that retail demand is lagging institutional demand. There is room for growth as more retail investors wake up to the opportunity.
Signs of Institutional Confidence
Institutional sentiment is already bullish.
The Silver Institute reported that physical holdings in global silver-backed exchange-traded products rose to 1.13 billion ounces in the first half of 2025. That’s just 7% below the all-time peak of 1.21 billion ounces set in February 2021.5
The value of these holdings exceeded $40 billion for the first time ever last month. June also marked the most significant monthly increase in silver holdings since the Reddit-driven silver squeeze of 2021.
Futures positions are also rising. Net long positions in silver futures are up 163% from late 2024 levels, signaling strong conviction among professional traders.6
Technical and Historical Support
Technical analysis also supports higher prices. Silver’s long-term logarithmic chart, dating back to the 1960s, shows a classic cup-and-handle pattern. This suggests potential for silver to eventually reach several hundred dollars per ounce during this bull market.
And when you adjust silver’s price for inflation, it’s clear just how undervalued it still is. During the Hunt brothers’ buying frenzy in 1980, silver’s inflation-adjusted price hit $197. In the 2011 bull run, it reached $71. Today, at about $38.40, silver remains well below those historical highs.7
What’s Next?
Analysts are extremely bullish on silver thanks to rising industrial demand, rising investment demand, and ongoing supply deficits. Some even project silver rallying above $44 and pushing toward $50 before any meaningful pullback. At which point some profit-taking could occur before prices resume their upward march.
As Rich Dad Poor Dad author Robert Kiyosaki recently posted:
“REMINDER: Rich Lesson: ‘Your profits are made when you buy… not when you sell.’ Silver is the best ‘asymmetric buy’ today. That means more possible upside gain with little downside risk. Silver price will explode in July. Everyone can afford silver today… but not tomorrow. Take care.”8
The weakening U.S. dollar is adding fuel to the fire. The U.S. Dollar Index recently broke below the key 100 level, a major technical breakdown. In other words, as the dollar loses value against other currencies, investors often turn to silver as a hedge, driving its price higher.
Conclusion
Many analysts agree: a silver bull market is upon us. Yes, silver is notoriously volatile. But metrics point to consolidated prices with strong support and clear tailwinds. Compared to gold, silver remains an accessible entry point to gain the safe-haven benefits of precious metals.
For those looking to protect their savings with physical silver, now may be the time to act, before retail demand catches up and prices move even higher. Contact American Hartford Gold today at 800-462-0071 to learn more about how owning physical silver in a tax-advantaged Gold IRA can protect your financial future.
Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.
Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.
Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.
AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.
Notes:
1. https://seekingalpha.com/article/4801284-silver-bull-market-officially-begun-technical-analysis
2. https://www.fxempire.com/forecasts/article/the-silver-copper-connection-and-the-key-anniversary-1533011
3. https://www.fxempire.com/forecasts/article/the-silver-copper-connection-and-the-key-anniversary-1533011
4. https://seekingalpha.com/article/4801284-silver-bull-market-officially-begun-technical-analysis
5. https://www.kitco.com/news/article/2025-07-11/silver-rallies-above-38-incredible-breakout-13-year-highs
6. https://www.kitco.com/news/article/2025-07-10/silver-investment-ramps-2025-etf-inflows-already-surpass-all-2024-silver
7. https://seekingalpha.com/article/4801284-silver-bull-market-officially-begun-technical-analysis
8. https://www.etftrends.com/gold-silver-investing-channel/will-summer-silver/
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