Silver prices have been navigating a volatile landscape, hovering above the $30 support level as the metal continues to be influenced by a mix of factors like industrial demand, geopolitical developments, and shifting investment trends.
Despite the impressive performance in 2024, marked by a 36% year increase over the year, attention remains on whether this momentum can be sustained in 2025 or whether broader macroeconomic challenges will curb its gains.
ChatGPT predicts Silver price trajectory for 2025
To provide a clearer outlook, Finbold consulted ChatGPT-4o, which projects that silver could target a range of $40 to $50 in 2025. This optimistic projection stems from a combination of factors, including strong industrial demand, evolving macroeconomic conditions, and silver’s dual role as a key industrial material and a safe-haven asset.
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Industrial demand for Silver
Industrial demand remains a cornerstone of silver’s strength, driven largely by the photovoltaic solar panel sector, where demand has doubled over the past three years.
However, ChatGPT warns that potential cuts to solar energy funding under President Donald Trump’s administration could dampen this momentum, posing a significant downside risk.
Adding to the challenges, Chinese tariff uncertainties are clouding silver’s industrial outlook, with China being a major consumer.
These escalating trade tensions and geopolitical uncertainties are emerging as a significant headwind for silver’s industrial demand.
Changing investor preferences
Investment capital appears to be steering clear of silver, with investors shifting away from silver towards gold, cryptocurrencies, and equities as they search for higher returns and perceived stability.
This has raised liquidity concerns in the silver market, with limited buying interest evident at current levels.
As institutional support weakens and alternative assets gain favor, silver’s trajectory faces growing uncertainty under the weight of these shifting dynamics.
Macroeconomic factors weigh on Silver prices
The AI model notes that expectations of Federal Reserve rate cuts, driven by slowing inflation, could provide a favorable backdrop for silver prices.
A stable or weakening U.S. dollar, which typically has an inverse relationship with silver, would further enhance the metal’s appeal to investors.
Meanwhile, the U.S. Dollar Index (DXY) remains subdued after recovering from a two-week low. The U.S. dollar is anticipated to trade sideways in the near term as investors await clarity from the Federal Reserve’s upcoming monetary policy decision.
Moreover, mining expert Shawn Khunkhun, president and CEO of Dolly Varden Silver, has predicted that silver is set to outperform gold. Khunkhun suggests the white metal is well-positioned to break past the $50 resistance level and aim for higher targets, lending further credibility to these projections.
That being said, overall projections hint the metal could target $40 to $50 next year, with potential to outperform gold.
However, silver’s path remains tied to developments in trade policies, institutional demand, and the broader economic landscape.
As these factors play out, silver’s performance in 2025 will be closely watched by investors and market participants alike.
Featured image via Shutterstock
