Silver prices climbed above $37.20 per ounce on Wednesday, reaching their highest level since 2012, buoyed by strong industrial demand, persistent supply shortages, and increased safe-haven buying amid geopolitical uncertainty. The metal’s expanding use in solar power, electronics, and broader electrification trends now accounts for over half of global demand, reinforcing its long-term structural importance.
On the supply side, the silver market is facing its fifth consecutive annual deficit. While the Silver Institute expects the shortfall to narrow by 21% in 2025, lingering supply constraints continue to support elevated prices. Geopolitical tensions also added to silver’s appeal, with US President Donald Trump demanding Iran’s “unconditional surrender” and threatening a strike on Supreme Leader Khamenei. Meanwhile, investors are closely watching the US Federal Reserve’s policy decision due later today, where it is widely expected to keep interest rates unchanged.
