Global investment in silver surged in the first half of 2025, driven by geopolitical and economic uncertainties and strong price expectations. This momentum pushed silver prices in June to a 13-year high.
Silver prices rose 25% through June, closely tracking gold’s 26% rise. A high gold-to-silver ratio earlier this year made silver appear undervalued, attracting fresh interest. Positive sentiment in industrial metals, sparked by renewed US-China trade talks, also boosted silver.
Silver-backed exchange-traded products (ETPs) saw net inflows of 95 million ounces, already exceeding 2024 totals. By June-end, global holdings hit 1.13 billion ounces—just 7% below the 2021 peak—with the value crossing $40 billion for the first time. June alone accounted for nearly half the year’s gains, marking the strongest monthly rise since the 2021 Reddit-fuelled silver squeeze.
Institutional interest remained strong, with net long positions on the CME up 163% from end-2024, reaching the highest average level since early 2021.
Retail demand was mixed. European investment continued its recovery, while India posted a 7% year-on-year rise in demand, supported by strong price expectations. In the US, retail demand fell sharply—down an estimated 30%—as high prices prompted profit-taking and the absence of a major financial crisis dampened safe-haven buying.
Looking ahead, market activity in bars and coins is expected to remain volatile. If silver crosses $40, it may trigger both profit-taking and renewed investor interest.