Silver is quickly becoming one of the most essential metals driving the global transition to clean energy and advanced technology. Once valued mainly as a precious metal, it’s now recognized for its vital role across a wide range of modern industries. From powering solar panels and electric vehicles to advancing medical technology and improving water purification systems, silver’s unique properties are making it indispensable in shaping a more sustainable and innovative future.

Unlike gold—which is often prized mainly as a store of wealth—silver stands out for its powerful dual role. Beyond its appeal to investors, it’s a crucial metal for industry. In 2025, silver’s momentum is being fuel by two major trends: surging demand from green technologies and increasingly limited supply. These forces are transforming silver into one of the most dynamic assets on the market today. Silver’s value has surged an impressive 78% this year — a move that caught many by surprise. However, economists have cautioned that despite outperforming gold so far, trading silver remains a riskier bet. Over the past day alone, spot silver climbed another 3.5%, reaching $52.25 per ounce. According to Goldman Sachs, silver prices are likely to continue rising amid the ongoing U.S. government shutdown and growing expectations of interest rate cuts from the Federal Reserve.

Gold and silver prices tend to shift together and are both seen as classic safe-haven investments. However, Goldman Sachs anticipates greater volatility and downside risk for silver compared to gold. The key difference lies in demand—gold enjoys strong backing from central banks, while silver’s market is driven more by industrial and speculative factors. Gold will continue to be a more practical option for central banks to invest in because the per-ounce value of gold is significantly higher than silver.

Bank of America analysts have raised their price forecasts for both gold and silver, becoming the first major bank to project gold prices reaching $5,000 per ounce and silver hitting $65 per ounce by 2026. However, the bank also warned that silver could face short-term risks. As market liquidity increases and demand fluctuates, prices may experience heightened volatility in the near term.

 Credit: Independent News Pakistan (INP)