“Silver demand on the rise as investors turn to the precious metal for potential gains”
Frankfurt, 6 March 2025 – Silver is gaining increasing attention from the markets after a year of record-breaking gold prices. In the past year, silver has seen a remarkable 29% increase in price, with investors achieving gains of up to 59% by buying at the lowest and selling at the peak.
Fueling this growth is the strong demand for silver in various industries, particularly in the electronics and artificial intelligence (AI) sectors. According to the Silver Institute, industrial applications currently account for 58% of global silver demand, and this number is expected to continue to rise. The growing electrification of industries, expansion of renewable energy, and boom in AI hardware are all contributing to the high demand for silver.
Aside from its industrial uses, silver is also becoming a popular investment asset, especially for retail investors. “Silver presents an excellent opportunity for newcomers to build wealth,” says Christian Rauch, CEO of Degussa, a leading precious metal dealer. “Due to its comparatively lower price, it remains accessible to investors with smaller budgets.” Analysts predict that silver prices will continue to see double-digit increases this year, with the potential to reach $35 per troy ounce.
However, experts warn that the supply of silver may struggle to keep up with the rising demand. Michael Widmer, an analyst at Bank of America, cautions that insufficient investment in new mining projects could lead to a structural deficit, further constraining supply. Additionally, above-ground reserves are depleting, and a significant amount of industrially used silver is permanently lost due to inefficient recycling.
Market indicators also suggest a positive outlook for silver prices in the coming months. The gold-silver ratio, which measures how many ounces of silver are needed to purchase one ounce of gold, is currently at 91. Historically, silver prices tend to rise after periods of a high gold-silver ratio. This is seen as a bullish signal for the future performance of silver by long-term investors and market analysts.
Despite the 2022 abolition of differential taxation on silver imports from non-EU countries, there are still tax-efficient strategies available for investors. One such option is the Degussa Tax-Free Silver Storage, where clients can buy and sell silver without VAT. “Our experts at Degussa branches are always available to provide guidance,” explains Rauch.
In conclusion, with the combination of surging demand, limited supply, and positive market indicators, silver is poised to be a winner in the years ahead. Experts consider it a compelling opportunity for investors looking to capitalize on the next precious metals rally.
For more information on Degussa and their services, please visit www.degussa.com.
About Degussa Goldhandel
Degussa Goldhandel is a trusted provider of certified investment bars and bullion coins, offering comprehensive services for precious metal investments. With a team of approximately 220 employees, the company currently operates 16 branches across Germany, Switzerland, Spain, and the United Kingdom.
For further information, please contact:
Degussa Holding AG, Oberneuhofstrasse 12, 6340 Baar, Switzerland,
Andrea Haener, Email: presse@degussa.com
