If the market follows anticipated patterns, analysts maintain they expect silver yields to exceed those of gold once more by 2025.

They pointed out that “this year, silver has seen the largest increase among all precious metals, rising 26.82% by the end of NovemberEarlier this year, the commencement of a global interest rate reduction cycle benefitted both gold and silverConcurrently, the ongoing demand for solar photovoltaic technology and a robust rebound in potential demand from India have supported the strong prices of physical silver.”

As they analyze the evolving gold-to-silver ratio, which has been on an upward trajectory, experts assert that silver's relative value against gold is still historically low

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They articulate a compelling argument: “In the latter stages of a bull market, silver typically outperforms goldIf a rise in silver prices causes the gold-to-silver ratio to revert to its historical mean of 67, this would predict silver prices reaching as high as $40 per ounce.”

However, Heraeus has issued a cautionary note, indicating that investors should not overlook the risks associated with economic recessions and their impact on demandAnalysts emphasize, “Earlier this year, the yield curve in the U.Ssaw its longest inversion since 1980, which has historically been a reliable indicator forecasting a recession in the subsequent 6 to 12 monthsThough various segments of the U.Seconomy, including the stock market, appear relatively strong, the yield curve suggests the U.Smight enter a recession by the second quarter of 2025.”

They note further, “During economic downturns, silver often fails to match the performance of gold

A contraction in industrial activity could mean that aside from demand for electrical and electronic products and solar photovoltaic applications, industrial demand for silver may see little growth.”

Furthermore, Heraeus warns that the demand for silver jewelry and artifacts in India might decline next yearThey write, “Historical trends in Indian silver imports suggest that 2025 could be a weak year for demand.”

On a more optimistic note, the robust demand for solar energy is anticipated to continue its recent momentum heading into 2025.

Analysts state, “The thriving demand from the solar energy sector for silver, particularly in China, has emerged as a key driver for the growth in overall silver demand in recent years

We expect solar-related silver demand to remain strong next year, as more countries aim to reach gigawatt-scale installed capacitiesAdditionally, the increasing deployment of Topcon cells, which utilize higher silver content per watt, will further bolster silver demand.”

Forecasts anticipate that by 2025, spot silver prices will fluctuate between $28 and $40 per ounce.

The analysts elaborated, “The demand for silver within the solar energy sector, specifically within the Chinese market, has proven to be particularly pronounced and remains one of the main growth drivers for silver demandWith an increasing global focus on clean energy, countries are ramping up their investment and supportive policies towards solar energy, paving the way for unprecedented opportunities in the solar sector