July 2025 - Week 4 Edition
Silver Price Predictions Reach the Stratosphere, at $200+
Silver is up over 35 percent, so far in 2025. Two weeks ago, a COMEX (commodity exchange) executive predicted silver could rise at least fourfold in the next few years. While we are skeptical of predictions of any huge price jumps – we prefer a solid, slowly rising bull market – his views are worth a listen:
On July 12, 2025, Michael Oliver, who once worked directly with the Chairman of the COMEX during the bubble-like late 1970s bull market – when silver hit an all-time record of $50 – told King World News he now predicts the price of silver will hit $160 to $240 an ounce. In explaining this super-high price, Oliver said, “Silver is compensating for having been restrained for so long by forces that are trying to hold it back.” He argued silver has been under 2% of the price of gold for a long time but if it returns to its historic 16:1 ratio to gold, silver would be over $200.
We would dispute any historic “natural ratio” of silver to gold, since the 16:1 ratio was set by government regulations and was heavily influenced by silver mining interests. Since both metals are now free to compete in the open market, the gold/silver ratio has been much higher.
Still, silver has some catching up to do after previous years of lagging behind gold. Silver’s recent rise reflects anticipation of an economic boom, bolstering silver’s greater use (vs. gold) in industry. Remember, we told you that industrial silver demand increased in 2024 and demand for silver in 2025 would likely continue, resulting in supply deficits for the fifth year in a row. The London Bullion Market Association predicts that silver and gold will rise significantly in 2025.
Silver Nears $40 Per Ounce – What’s Different This Time?
Silver has slowly been climbing from under $29 to nearly $39 per ounce this year, barely outpacing a rising gold market. This rise in silver, on the surface, seems quite different from the previous quick “bubble” peaks of $50 per ounce in 1980 and 2011. (1) It has been slow and methodical in its rise, not like previous buying panics. (2) It has been based more on the fundamentals rather than on the Hunt Brothers trying to corner the silver market in 1979 and 1980, or the panic doubling of gold in early 2011 due to the fallout from the Great Financial Crisis and the funding of U.S. deficits.
Going into 2025, the London Bullion Market Association’s (LBMA) survey of major bullion dealers forecast what seemed like a bullish consensus, predicting an average price of $32.86 for 2025. That represented a healthy 16% increase over the average price ($28.32) in 2024 and a 14% increase over the year-end closing silver price. The LBMA’s most bullish firm predicted silver to reach an average 2025 price of $36.50 (the low forecast was $28.25). But silver surprised them all, with a quick 19% rise to $35 in the first quarter and a 24% rise in the first half. Then, in July, the real fireworks began with silver already up over 10% this month alone.
As usual, Wall Street joins the bandwagon after most of the gains are already in the book. On July 16, Citibank analysts raised their three-month silver price forecast from $38 to $40, even as silver was already rising rapidly toward $40. It doesn’t take much courage to predict events that have already (or almost already) happened but we predicted $40 silver long before the crowd.
So, silver is up over 35% as of July 22, 2025, after rising 23% in 2024, a strong and gradual bull market, unlike any previous “bubble” increases. To find out why silver is rising in a slower, more controlled manner this time, look no further than the fundamentals of supply and demand.
According to the Silver Institute:
- Silver’s industrial demand reached a record 680 million ounces in 2024 and is increasing to over a 700-million-ounce pace in 2025.
- Silver is the world’s best conductor of electricity, so it is employed in almost every computer, mobile phone, automobile or electrical appliance.
- The silver market remains in a sizable supply/demand deficit for the fifth straight year. (A supply deficit means that total demand for silver exceeds the available new supply, including mining and recycling).
- Due in part to this supply shortage and rising silver prices, silver recycling is projected to increase 5% this year, exceeding 200 million ounces for the first time since 2012
- Investment demand in silver-backed exchange-traded funds (ETFs) was 95 million ounces in the first half of 2025, surpassing the 12-month total ETF demand in 2024.
Since 70% of silver demand is industrial, this sector tends to drive silver’s price.
Silver’s industrial demand is increasing the most in solar panels, medical equipment and AI technology, but vehicle electrification is also utilizing silver in its circuitry. Also, Radio Frequency Identification Device (RFID) chips coated with silver are replacing bar codes in many supermarkets and product inventories.
It’s a pleasant surprise to see silver rising but it’s even more pleasant to see it rising gradually and consistently – a refreshing change from the unsustainable price bubbles of the past. Call one of our professional account representatives now to add some investment-grade silver to your portfolio at great prices.
Gold was up $90 (+2.7%) in the first two trading days of this week (July 21-22) and silver was up $1.40 (+3.7%), reaching a high of $39.62 on the futures market – silver’s highest level since 2011. Gold has quietly reached another record high of $3,444 on the futures market. Most of the recent rise has been tied to tariff uncertainty, with the August 1st deadline of tariff implementation now just 10 days away. Silver is up in tandem with gold but also fueled by rising industrial demand.
Important Disclosure Notification: All statements, opinions, pricing, and ideas herein are believed to be reliable, truthful and accurate to the best of the Publisher's knowledge at this time. They are not guaranteed in any way by anybody and are subject to change over time. The Publisher disclaims and is not liable for any claims or losses which may be incurred by third parties while relying on information published herein. Individuals should not look at this publication as giving finance or investment advice or information for their individual suitability. All readers are advised to independently verify all representations made herein or by its representatives for your individual suitability before making your investment or collecting decisions. Arbitration: This company strives to handle customer complaint issues directly with customer in an expeditious manner. In the event an amicable resolution cannot be reached, you agree to accept binding arbitration. Any dispute, controversy, claim or disagreement arising out of or relating to transactions between you and this company shall be resolved by binding arbitration pursuant to the Federal Arbitration Act and conducted in Beaumont, Jefferson County, Texas. It is understood that the parties waive any right to a jury trial. Judgment upon the award rendered by the Arbitrator may be entered in any court having jurisdiction thereof. Reproduction or quotation of this newsletter is prohibited without written permission of the Publisher.
