Silver Price Outlook: Market Searches for Bottom Amid Supply-Demand Dynamics
Silver Price Outlook: Market Searches for Bottom Amid Supply-Demand Dynamics
Silver prices have fallen to their lowest levels in over eight weeks, reaching approximately $31.00 per ounce.
This decline is primarily attributed to concerns about weakening industrial demand amid global recession fears, exacerbated by recent U.S. tariff implementations.
Unlike gold, which benefits from its status as a safe-haven asset, silver's price is significantly influenced by its industrial applications, accounting for over half of its global demand.
The current economic climate has dampened industrial demand, putting additional pressure on silver prices.
Despite recent downturns, analysts remain optimistic about silver's long-term prospects.
UBS forecasts that silver prices will recover to between $36 and $38 per ounce in 2025, driven by increasing industrial and financial demand.
The silver market is experiencing a supply deficit, primarily due to mining disruptions and a lack of significant new discoveries.
This imbalance, coupled with rising industrial demand, especially from the renewable energy sector, is expected to support higher silver prices in the medium to long term.
