Silver’s price at $29.29 in early 2025 can be seen as undervalued when considering the broader market trends and expert forecasts. After a strong rally in 2024, where silver prices surged past $30 for the first time in over a decade, many analysts expect further gains throughout 2025. The metal’s price has been driven up by several key factors that suggest it could rise well beyond the current level.
One major reason silver is poised for higher prices is its dual role as both an industrial metal and a store of value. Industrial demand has been growing rapidly, especially with increased use in electronics, solar panels, and electric vehicles—sectors expanding due to global shifts toward clean energy. At the same time, supply constraints are tightening; mining projects face delays and inventories have dropped to multi-year lows. This imbalance between rising demand and limited supply creates upward pressure on prices.
Additionally, silver benefits from safe-haven buying amid ongoing inflation concerns and geopolitical tensions worldwide. Investors often turn to precious metals like silver during uncertain economic times as protection against currency devaluation or market volatility.
Looking ahead through 2025, financial institutions generally forecast silver reaching between $38 to $40 per ounce or even higher by mid-year or later months. Some predictions see it climbing above $45 by year-end due to sustained industrial growth combined with investment demand.
Given these dynamics—strong industrial use growth, persistent supply deficits, safe-haven appeal amid inflationary pressures—and expert price targets well above current levels around $29-$30 per ounce early in 2025—it appears that silver remains undervalued at this point in time relative to its potential trajectory for the year ahead.