Sprott Silver Investment Outlook Mid-Year 2025

Silver has surged nearly 25% year-to-date in 2025, breaking above $35/oz to reach decade highs around $38. The rally is driven by a persistent supply deficit that has lasted seven consecutive years, with a cumulative shortfall of almost 800 million ounces since 2021.

Industrial demand, particularly from solar panels and electronics, accounts for 59% of silver usage and continues growing. With the gold-to-silver ratio at 91 (versus historical average of 67), silver appears undervalued.

Diminished freely-traded inventories have created conditions for a potential “silver squeeze,” where even modest demand increases could trigger sharp price spikes.