Silver Extends Historic Rally as Supply Deficit and Industrial

Silver prices climbed above $36 per ounce on June 9, 2025, reaching their highest level since February 2012, according to official trading data and chart analysis.

The rally, which began in late May, has accelerated over the past 24 hours and now delivers a year-to-date gain of nearly 25%. Analysts attribute this surge to a persistent supply deficit and robust industrial demand, especially from the solar and electronics sectors.

The Silver Institute reports that industrial applications now account for more than half of global silver demand. This demand, particularly from photovoltaic manufacturing and electric vehicles, continues to outpace mine production by over 100 million ounces.

Recent data from China shows wind and solar capacity rose sharply in the first quarter, further supporting silver’s industrial use. Meanwhile, ETF inflows remain strong, with silver-backed funds adding 2.2 million ounces last week, reflecting sustained investor interest.

Macroeconomic factors have also played a significant role. The U.S. dollar has weakened steadily, making dollar-denominated assets like silver more attractive to foreign buyers.

This trend intensified after the U.S. government raised its debt ceiling by $4 trillion, fueling concerns about fiscal stability. At the same time, geopolitical tensions and disappointing U.S. economic indicators have reinforced safe-haven demand for precious metals.

Silver Market Outlook

The gold-to-silver ratio, a key industry metric, has narrowed from 105 in April to around 94 in early June, highlighting silver’s outperformance compared to gold. Technical analysis of the four-hour and daily charts confirms the strength of the current uptrend.

The four-hour chart shows a clear breakout and sustained move above key moving averages, with prices consistently trading near the upper Bollinger Band. This pattern signals strong momentum and limited resistance until the $38 level.

The daily chart reinforces this view, with silver breaking decisively above its October 2024 high and maintaining its position above the 50-day and 200-day simple moving averages.

The relative strength index (RSI) stands at 73, indicating overbought conditions, but not yet at extreme levels. Analysts note that while some profit-taking may occur, the structural trend remains upward, with support seen at $34.3 to $34.7 and major support at $31.9.

Volumes in major silver markets, including London, New York, Shanghai, and Mumbai, have surged in tandem with prices. Silver ETFs have posted some of the strongest inflows among commodities, and silver miners’ shares have outperformed the broader market.

The narrative behind silver’s rally remains grounded in hard fundamentals: a persistent supply shortfall, rising industrial demand, and a favorable macroeconomic backdrop.

As the metal enters its third week of gains, market participants continue to watch for signs of further upside, with technicals and fundamentals aligned for continued strength.