Silver prices have increased significantly in the past month. Silver has gained over 36% in the last 12 months and almost 5% in the last 30 days.
A recent development might just see an enhanced level of interest for Silver. The U.S. Department of the Interior, through the U.S. Geological Survey, has proposed to add Silver to the List of Critical Minerals for the USA.
The draft 2025 List of Critical Minerals proposes to add Potash, silicon, copper, silver, rhenium and lead for inclusion to the list and arsenic and tellurium were recommended for removal.
The draft list will guide federal strategy, investment, and permitting decisions designed to secure the minerals needed to drive the U.S. economy and protect national security.
Silver prices seem to have found support from the announcement, but are struggling to cross the $39 barrier. Currently, Spot silver price trades at $38.87.
Silver and copper were added because new data show their strategic role in clean energy. Although both metals are easily accessible worldwide, supply risks are becoming increasingly significant due to the rapid increase in demand.
Silver Demand Supply
Silver has strong industrial demand, especially from new age industries like EVs and solar energy, in addition to electronics, medical devices.
In 2025, the demand for silver is likely to exceed the supply. The world’s total silver supply is predicted to stay at 1.05 billion ounces, while the demand for silver is predicted to reach 1.20 billion ounces this year.
This disparity could continue to support the price of silver for the fifth consecutive year.
Gold-Silver Ratio
The gold-silver ratio is a popular measure of determining how expensive one metal is compared to another. The long-term average for the ratio is around 70. The bull rally in gold in the first half of 2025 took the ratio above 100.
Since then, the gold prices have remained range-bound while the silver prices have rallied harder to catch up with the yellow metal.
With gold trading around $3,400 and silver around $39, the gold-silver ratio is around 85, showing there’s more space for silver to move up.
Silver price today in India is Rs 1,17,500 per kg. while the gold price today in India is Rs 1,02,250 per ten gram, an all-time high for the yellow metal, having crossed the Rs 1 lakh mark in July.