JPMorgan Expects Silver Prices to Soar in 2025

PMorgan, one of the largest investment banks, has predicted that silver prices will soar in 2025, led by different factors including an increase in demand from the expected monetary shifts and silver’s value as an inflation hedge. The price action, expected to reach $36 per ounce, will also be aided by supply constraints.

Several analysts indicate that the precious metals commodity market will soar in the coming years. According to JPMorgan, silver is poised to experience an upswing taking prices to $36 per ounce in 2025, led by different factors underpinned by upcoming monetary decisions that would shift investor interest to these commodities.

One of these factors is the expectation of the Federal Reserve cutting interest rates and monetary easing, linked to the weakening of the dollar and a strengthening of all assets denominated and traded in this currency. A more structural factor is related to the increase in silver demand derived from the metal applications for the technology industry, including solar panels, automotive products, and others that will keep requiring silver as a key material for their activities.

But perhaps the more important catalyst to exacerbate this price upswing are the supply constraints created by the deficit and the difficulties the silver industry faces on the mining side. Other experts have already warned that while demand has been steadily rising in the last years, supply has stagnated and prices have remained in the same range, creating a deficit in the market that is being covered by secondary above-ground inventories, including futures markets and exchange-traded funds (EFTs).

Silver market analyst Peter Krauth estimates these inventories will end in 12-24 months, putting silver prices in a strong place to soar. This timeline intersects with what JPMorgan foresees for silver markets.

This silver deficit is calculated to reach 240 million ounces, while the industry can only produce 850 million ounces annually.