Silver investment witnessed a significant surge in the first half of 2025, fueled by ongoing geopolitical tensions, economic uncertainty, and bullish price outlooks. This momentum drove silver prices to a 13-year high in June.
By mid-year, silver had climbed 25%, closely mirroring gold’s 26% rise. The earlier high gold-to-silver ratio suggested silver was undervalued, drawing increased investor attention. Renewed optimism in industrial metals, following fresh trade discussions between the US and China, also contributed to silver’s rally.
Silver-backed exchange-traded products (ETPs) recorded net inflows of 95 million ounces—already surpassing the total for 2024. Global silver holdings reached 1.13 billion ounces by the end of June, just 7% below the 2021 record. Their total value crossed $40 billion for the first time, with June alone accounting for nearly half of the year’s gains—the strongest monthly growth since the Reddit-driven silver surge in 2021.
Institutional demand remained robust. Net long positions on the CME rose 163% from the end of 2024, reaching their highest average since early 2021.
Retail investment showed a mixed picture. European demand continued to recover, while India reported a 7% year-on-year increase, bolstered by positive price sentiment. In contrast, US retail interest declined sharply—down an estimated 30%—as investors cashed in on profits amid high prices and a lack of a major financial crisis reduced the appeal of silver as a safe haven.
Looking ahead, the market for silver bars and coins is expected to stay volatile. A breakout above the $40 mark could prompt both profit-taking and renewed buying activity.