Key Takeaways:
In the face of a recent modern-day “gold rush” fueled by central bank demand, some analysts are predicting that silver price performances might actually outperform gold in 2025. This outlook stems in part from silver’s dual identity as both an industrial metal and a safe-haven asset, paired with a chronic supply deficit expected to support its price. Not everyone is aware of silver’s price potential, but at least one respected strategist believes the metal could climb more than 20%—a compelling development for investors seeking stability in what could be a turbulent economic period.
After gold’s 27% leap in 2024[1], many are asking if the award for best performance in 2025 could belong to silver instead. Multiple analysts think so, including a prominent strategist from Saxo Bank who remains bullish on silver’s prospects as we enter the new year.
Last year, the white metal quietly climbed 21%[1]—a hefty increase that still went largely unnoticed, thanks to gold’s higher-profile surge.
Yet this isn’t the first time silver has outperformed gold. In 2020, with pandemic-driven uncertainty, silver rose nearly 50%, beating gold’s gains and most other asset classes.[1] [2] Despite its status as a precious metal, silver often gets overlooked because it’s less scarce and priced far below gold, casting it as the “poorer cousin.”[3][4]
But that dismissal may be a missed opportunity for precious metals IRA owners and other investors. Silver’s unique blend of monetary and industrial usefulness could make it an appealing option for those seeking stability and growth in an increasingly volatile market.
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Silver’s Dual Nature and Investment Potential
Silver’s “dual nature”—precious safe-haven metal and critical industrial component—forms the core of its appeal for 2025. Currently, more than half of silver’s demand stems from industry, thanks to silver’s status as a leading conductor of electricity. Silver’s industrial usage now accounts for roughly 55% of its overall demand.[5]
As metals analyst Adrian Ash explains, “If something’s got an on/off switch, it most likely contains silver.”[6] This blend of monetary and industrial value is also key to the bullish silver price outlook shared by Ole Hansen of Saxo Bank, who believes silver may even outperform gold this year.
This article digs into Hansen’s insights to understand why the silver price could remain an attractive option for investors seeking both diversification and stability.
Silver Price Outlook for 2025
Major institutions such as Citi and UBS project that silver could climb from its current level of around $31 to as high as $38 to $40 per ounce this year.[7] Meanwhile, nearly half of participants in a recent Kitco News survey expect silver to surpass $40 in 2025.[8]
Hansen, Saxo Bank’s head of commodity strategy, is especially bullish—he believes silver’s dual role as both a monetary and industrial metal may help it outperform gold.
This mix of monetary and industrial value is key to the bullish silver price outlook shared by Hansen in multiple recent updates, where he has been saying he believes silver may outperform gold this year.
This article will dig into Hansen’s insights to better understand why anticipated silver prices this year could make it an attractive option for investors seeking diversification and stability in their portfolios.
Silver’s Rally Mirrors Gold’s Upward Trajectory
In a December 20th report, Hansen highlighted silver’s strong 2024 performance, crediting the same macroeconomic forces that boosted gold.
“Silver’s rally this year (2024) has largely mirrored gold’s upward trajectory,” he wrote, citing uncertain geopolitics and central banks’ gold-buying spree as indirect drivers of silver price growth.[9]
Preliminary estimates place total silver demand at 1.21 billion ounces for 2024—the second-highest annual total on record—while industrial demand alone climbed 7% to surpass 700 million ounces for the first time.[10] According to Hansen, electronics and renewable energy, especially solar, played a major role in this surge.
Silver Prices Enhanced by Chronic Supply Deficit, Says Hansen
Ole Hansen credits heavy physical demand in 2024 for extending silver’s supply deficit into its fourth straight year, noting, “The expectation of sustained industrial demand is likely to keep silver in a supply deficit into 2025.”[9]
He believes silver’s dual role as both an investment metal and an industrial asset could help it outperform gold—especially if President Trump’s policies further boost the metal’s monetary appeal.
As Hansen explains, “This dual role—balancing both investment and industrial demand—could enable silver to outperform gold in the coming year.”[9] He has reiterated this view in multiple updates, underscoring his optimism that silver may surpass gold in the near term.
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Reasons for Silver Optimism in 2025 (“Trump 2.0” included)
In recent updates, Ole Hansen highlights four main factors supporting his bullish outlook for silver this year:
- Geopolitical tension and “Trump 2.0”
- Monetary movement
- Central bank demand and global debt
- Growing industrial utility.
(Read details in the original Augusta Precious Metals article – link at bottom of this page.)
Silver Price Projections in 2025 from Ole Hansen
So, how exactly does Hansen believe gold and silver prices will develop in 2025?
He believes that both gold and silver will continue benefitting from their monetary properties, with silver benefitting from its industrial strengths, citing a possible upside target of $2,900 per ounce for gold—an increase of around 5%[12]—and a target of $38 per ounce for silver, representing roughly 23% above current silver price levels.[13]
The “two-sided” nature of silver and the support shown by analysts such as Hansen may prompt many gold-focused investors to rethink their allocations for 2025.
Silver or Gold—Which Metal to Choose?
Many investors ask whether gold or silver (or both) best suits their goals. The answer depends on what those goals are. (Get more facts and references in the original article from Augusta Precious Metals—see link at top of this page.)
With less than 10% of gold’s overall demand tied to industry, gold functions primarily as a monetary safe-haven asset best suited for long-term investment.[14]
In contrast, silver bridges both worlds: It can act as a store of value while its industrial applications drive additional demand. Because silver’s market is significantly smaller than gold’s, its price tends to move more dynamically.[15]
Some investors may favor gold for its stability, others may choose silver for its potential industrial upside, and many opt to hold both for greater diversification. For those who prefer a tax-advantaged approach, experts can help place physical gold and silver in a gold or silver IRA.
Time will tell whether silver will meet the bullish forecasts set by Hansen and others. But the enthusiasm surrounding silver investment in 2025 reminds us that gold isn’t the only precious metal worth watching. It could be the ideal moment to keep an eye on silver prices.
For more insight into 2025 silver price predictions, read the full article.
[1] StockCharts (accessed 1/23/25).
[2] Alasdair Sandford, Euronews, “Coronavirus: Half of humanity now on lockdown as 90 countries call for confinement” (April 3, 2020, accessed 1/23/25); By Heather Long and Andrew Van Dam, Washington Post, “U.S. unemployment rate soars to 14.7 percent, the worst since the Depression era” (May 8, 2020, accessed 1/23/25).
[3] Dominic Frisby, MoneyWeek, “Gold or silver: which is the better bet?” (August 23, 2024, accessed 1/23/25).
[4] Lee Ying Shan, CNBC.com, “Silver set for a ‘terrific year’ and could outperform gold to hit a 10-year high” (February 6, 2024, accessed 1/23/25).
[5] Tampa Steel, “Which Metal is the Best Conductor of Electricity?” (accessed 1/23/25); Maria Smirnova, Sprott, “Silver’s Impressive Strength in 2024” (January 6, 2025, accessed 1/23/25).
[6] Dan McEvoy, MoneyWeek, “Is now a good time to invest in silver?” (accessed 1/23/25).
[7] Reuters.com, “Citi stays bullish on gold, hikes price 3-month outlook to $2,800 per ounce” (October 21, 2024, accessed 1/23/25); UBS, “Silver: Not everything that glitters is gold” (November 4, 2024, accessed 1/23/25); CNBC.com, “Silver COMEX (Mar′25)” (accessed 1/23/25).
[8] Ernest Hoffman, Kitco, “Nearly half of retail traders expect silver to trade above $40/oz in 2025, experts see gains despite economic challenges” (December 23, 2024, accessed 1/23/25).
[9] Ole Hansen, Saxo Bank, “Silver’s Resurgence in 2024: A Precious Metal with an Industrial Edge” (December 20, 2024, accessed 1/23/25).
[10] Silver Institute, “Global Industrial Demand on Track for a New Record High in 2024.” (November 12, 2024, accessed 1/23/25); Hansen, “Silver’s Resurgence in 2024: A Precious Metal with an Industrial Edge.”
[11] Ole Hansen, Saxo Bank, “Gold and silver see fresh gains as Trump 2.0 era begins” (January 22, 2025, accessed 1/23/25).
[12] CNBC.com, “Gold COMEX (Feb′25)” (accessed 1/23/25).
[13] CNBC.com, “Silver COMEX (Mar′25).” [14] McEvoy, “Is now a good time to invest in silver?” [15] Smirnova, “Silver’s Impressive Strength in 2024.”
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