Heightened geopolitical and economic uncertainties, combined with optimistic price expectations, fueled strong silver investment in the first half of 2025. According to the Silver Institute, these dynamics pushed silver prices in June to their highest level in 13 years.
Futures Trading: Activity on the CME reflected strong institutional interest, with net managed money positions rising sharply. By June 24, net longs were up 163% compared to end-2024, marking their highest average levels since early 2021. This underscores investors’ continued confidence in silver as a store of value.
Retail Investment Trends: Retail demand for silver has been mixed across markets. In Europe, momentum that began in late 2024 carried forward into 2025, though volumes remain well below the peaks of 2020–2022. Reduced secondary market selling has, however, supported fresh demand for minted bars and coins.
India remains a bright spot, with retail silver demand up 7% year-on-year in the first half of 2025, reflecting robust price expectations. In contrast, the US market has seen a steep decline, with retail demand for physical silver falling an estimated 30%. Elevated prices encouraged profit-taking, while the absence of financial crises—such as the 2023 Silicon Valley Bank collapse—has tempered safe-haven buying.
Outlook: The bar and coin market could see heightened two-way trading in the coming months. A key uncertainty remains investor behavior if silver prices breach the US$40 mark—some may lock in profits, while others may enter expecting further gains.