Silver Prices Steady Near Record Levels Supported by Industrial Demand and Dollar Decline

Silver prices have stabilized today at approximately $62.5 per ounce, maintaining close proximity to all-time highs following strong gains that have pushed prices up over 100% since the beginning of the year.

This performance, as noted by TradingEconomics, is attributed to several factors, primarily declining global inventories, increased industrial demand, and the inclusion of silver in the strategic (critical) minerals list in the United States.

Strong Industrial Demand

Demand for silver has shown remarkable growth from key sectors, notably:

• Solar Energy

• Electric Vehicles

• Data Centers

These sectors increasingly rely on silver for technological applications and clean energy, enhancing expectations of continued supply pressures.

Investment Support

Prices also received additional support from strong inflows into exchange-traded funds (ETFs) and notable activity from individual investors, which bolstered expectations of a shortage in the silver market next year.

Impact of Monetary Policy

Silver also benefited from the decline of the US dollar following the Federal Reserve's decision to cut interest rates last week, although uncertainty remains regarding the monetary policy path in 2026.

Valuation Warnings

Despite this momentum, silver recorded a decline of over 2% at the end of last week after analysts warned about the high valuations compared to gold and potential concerns regarding the impact of US tariff exemptions on market movements.