Solomon Global: Why Silver Could Reach a $50 All-Time High in 2025

Silver’s march towards an all-time high and the psychologically important $50/oz milestone is no longer just being discussed in commodities circles. The so-called ‘devil’s metal’ is now making headlines in the mainstream press, and for good reason; the precious metal is up an astounding 64% year to date.

Back in March, silver was up 41% over 12 months but still trailed gold’s 45% increase. We suggested at the time that silver deserved cautious consideration for 2025, and since then, it has outpaced gold after lagging for years.

As Nick Cawley, contributing analyst for Solomon Global, recently highlighted to MarketWatch: “This year, silver has outperformed not only gold but the Nasdaq 100, S&P 500, and Bitcoin as investors seek diversification away from the equity space. The current economic backdrop and market sentiment will underpin both gold and silver over the coming quarters, with any pullbacks offering investors an opportunity.”

Silver and gold prices are closely correlated because both are viewed as stores of value during times of economic or geopolitical uncertainty. However, unlike gold, which is often seen as the ultimate safe-haven asset, silver also has significant industrial applications. This dual role makes silver more volatile. While it carries a higher risk, it also offers greater upside potential during periods of strong industrial demand and economic expansion.

Silver’s “All-Time High” and Silver Thursday

A chart showing the silver price from 1975 to 2025. Credit: silverprice.org

The official all-time high for silver is $49.45 per ounce, reached on January 17, 1980. However, it hit that level through major speculation/manipulation as opposed to broad-based demand for the metal. In the late 1970s, the Hunt brothers attempted to corner the silver market by acquiring vast quantities of silver (both physical and futures contracts); at one point, they accumulated approximately one-third of the entire world’s supply of privately held silver. This sent silver off on a parabolic run, which ended abruptly when margin calls forced massive liquidations. This resulted in a spectacular crash on March 27, 1980, a day now known as Silver Thursday. The white metal plummeted and by 1981 was trading below $10 per ounce. It did not test levels over $40 again until April 2011; this time, driven more by broad investment demand. Silver’s rally was fuelled by widespread buying from both retail and institutional investors.

Solomon Global Unpacks the Drivers Behind Silver’s Push to $50

Silver’s current surge is the result of numerous drivers that have aligned to create ideal conditions for a rally. To understand its latest move toward $50, we first need to look at the supply and demand dynamics that impact the price of any commodity. What sets silver apart is the scale of its industrial use alongside its role as a precious metal. This dual identity can influence its price heavily.

Structural Deficit for Silver

Currently, demand for silver is outpacing supply, creating a structural deficit.In other words, demand for silver is outweighing the amount that comes out of mines and from recycling. According to the Silver Institute in its World Silver Survey 2025, the metal saw its fourth year of a major deficit in 2024, with 2025 set for another major deficit.

The Current Demand for Silver

Between 2016 and 2024, total annual demand for silver increased from 993.3 million ounces to 1.16 billion¹. Silver has more industrial uses than gold, and this industrial demand, propelled by the green revolution, is at record levels. As the world continues to transition toward renewable energy and sustainable technologies, silver’s role in solar panels, electric vehicles, and other clean energy applications continues to support this strong industrial consumption. This fundamental demand provides a solid foundation beneath silver’s price action.

The combination of structural deficits and booming industrial demand creates supply-side pressure, pushing silver prices higher and tightening availability for investors and industry alike.

Silver’s Safe-Haven Appeal

Amidst ongoing economic and geopolitical uncertainty and inflationary pressures, investors continue to flock to both metals as a ‘safe haven.’ Whilst silver does not assume the same mantle as gold as the ultimate safe haven, it benefits from its dual role as both an industrial metal and a store-of-value asset.

Investors are increasingly seeking protection against potential currency devaluation and purchasing power erosion. Silver, with its limited supply, tends to hold or increase in value as a tangible alternative.

Affordability of Silver

Silver’s significantly lower price point, in comparison to gold, broadens its investor base. Because it requires less capital to enter the market, silver attracts not only institutional players but also a large tranche of retail investors, who want exposure to precious metals. The ability to buy in larger quantities makes silver particularly attractive for those wanting exposure to the upside potential of the precious metals market.

Silver at $50 by Christmas?

Silver’s strong upward trajectory is underpinned by strong fundamentals, unlike the speculative period of 1980. If supply constraints intensify and industrial demand continues to rise, silver could run a lot further. Solomon Global analyst Nick Cawley expects gold to reassert its dominance in the months ahead, buoyed by continued central bank buying. However, he notes that silver has found fresh prominence, attracting strong investor interest, and is well-positioned to deliver further gains in the coming weeks and months.

With two more rate cuts anticipated this year, uncertainty from the U.S. government shutdown and other supportive factors, the silver rally shows no signs of slowing. Like gold, silver plays a strong role in a diversified portfolio; it also offers exposure to emerging growth markets with significant demand-driven upside. Investors should, however, remain mindful of its more volatile nature.

1^ As reported in MoneyWeek on September 26^th, 2025, based on figures from The Silver Institute