Silver Outlook: Navigating Structural Deficits & Price Realignment
By Franklin Metals Group
Silver continues to capture attention. After reaching 13-year highs above $37/oz, its trajectory now hinges on industrial demand, supply deficits, and potential rebound momentum.
2025 Rally & Technical Context
Silver climbed to $35.82/oz by early June—a 24% year-to-date increase—driven by surging industrial use and tight supply conditions .
Even as markets pull back slightly, silver remains well-supported near $35, with upside potential if the broader precious-metal rally continues.
Deficit, Demand & Technical Opportunities
According to the Silver Institute, 2025 marks the fifth straight year of a structural silver deficit, albeit narrowed 21% to around 117.6 million oz .
Supply constraints—mainly due to silver’s by-product nature—and growing industrial applications (electronics, solar, EVs) suggest that $40–$50/oz remains within reach in the months ahead .
What This Means for You
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For Investors: Silver’s blend of industrial and safe-haven demand offers unique upside. Expect greater volatility, so consider laddered buys and defined entry zones.
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For Industrial Partners: Plan ahead—current price stability supports regular sourcing and inventory planning.
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For Recyclers: This market environment is optimal—recovery of silver from scrap is more profitable than ever.
The Franklin Metals Group Advantage
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Certified bullion sourcing: Competitive options geared to both investment and industrial needs.
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Recycling excellence: Efficient turn-key solutions that capture maximum value from scrap metal.
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Secure logistics: End-to-end handling with strict compliance and tailored storage capabilities.
Final Word
With structural imbalance and strong industrial demand underpinning prices, silver is at a strategic inflection point. Whether you’re investing in bullion or integrating silver into your operations, positioning now sets you up for possible gains.
Sources:
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Reuters: Silver rallies to 13-year high, deficit details
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Silver Institute & Metals Focus: Demand/supply balance forecasts