Silver surges past $35/oz level to hit a more than 13-year high

An employee takes granules of 99.99 percent pure silver at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk

Thu, June 5, 2025

Silver has soared to the key milestone of $35 per ounce, reaching its highest level in more than 13 years, propelled by robust industrial demand and ongoing supply deficits, analysts said.

Spot silver rose 2.5% to $35.82 per ounce as of 1347 GMT, having touched its highest level since February 2012 at $36.08.

Silver has soared to the key milestone of $35 per ounce, reaching its highest level in more than 13 years, propelled by robust industrial demand and ongoing supply deficits, analysts said.

Spot silver rose 2.5% to $35.82 per ounce as of 1347 GMT, having touched its highest level since February 2012 at $36.08.

That demand has remained robust despite broader industrial headwinds in the past few years, said Shah, due in part to its role in solar and electrification.

"With all precious metals in positive territory, I guess they are benefiting from similar factors - weaker US economic data supporting the case of rate cuts, which should support industrial demand at a later stage," said Giovanni Staunovo, UBS analyst.

Meanwhile, gold has surged about 29% in 2025, shattering records multiple times on safe-haven demand, expectations of U.S. rate cuts and robust central bank purchases.

SUPPLY DEFICIT AND LONG-TERM OUTLOOK

Silver is facing its fifth consecutive year of a structural market deficit, although the deficit is expected to narrow by 21% in 2025, according to the Silver Institute industry association.

"As silver is largely a by-product of mining for other metals, the elevated price will not necessarily drive a lot of new supply. So supply deficit markets may be maintained for longer," Shah added.

"In the long-term, rising demand for silver as an industrial material means prices could reach $40 or even $50 per ounce," said Fawad Razaqzada, market analyst at City Index and FOREX.com.