As we close out 2024, silver has proven itself the standout performer in precious metals.
Starting the year at roughly $23 per ounce, it surged to nearly $35 in October before settling around $30-$32 with two weeks left to go in the year – a remarkable run that left most market predictions in the dust.
Let’s see how the experts’ forecasts measured up against reality.
Silver Outperforms Most Major Forecasts
Most analysts significantly underestimated silver’s potential, with the metal reaching their $30 target before June.
What drove this impressive run? Beyond the Federal Reserve’s Q3 interest rate cuts that lifted all precious metals, silver benefited from three powerful drivers:
1. Industrial Demand Hits New Heights
Industrial demand for silver reached an unprecedented 700 million ounces in 2024. This milestone was primarily driven by green economy applications, particularly in the photovoltaic sector.
2. Solar’s Growing Silver Appetite
Silver’s use in solar panels has more than doubled in the past five years. The photovoltaic industry consumed an estimated 232 million ounces in 2024 – a 20% increase from 2023. India’s rapid solar capacity expansion played a significant role in this growth.
3. Electric Vehicles: Silver’s New Frontier
Remember when you rarely saw an EV on the road? Now they’re everywhere – and each one is a small but significant silver story. Modern electric vehicles use up to 50 grams of silver each, more than twice what traditional cars require. With EV production accelerating, automotive silver demand is rising to 90 million ounces by 2025.
Silver Demand Outpaces Supply
Adding to these demand factors, 2024 marked the fourth consecutive year of physical supply deficit, with a shortfall of around 182 million ounces. This persistent deficit continues to support prices and creates what appears to be a bullish setup for 2025.
Silver’s Next Chapter
Want to know what’s in store for silver in 2025? We’ve just published our comprehensive analysis examining supply constraints, industrial demand forecasts, and monetary factors that could influence prices in the year ahead.
Read the Full 2025 Silver Analysis
Stay tuned for more market insights,
Brandon S.
Editor
GoldSilver