The silver price surged during Q3, climbing to near-record highs before surpassing them at the start of Q4.
The white metal was influenced by many of the same factors as gold, including interest rate cuts from the US Federal Reserve, global economic uncertainty and safe-haven buying from investors.
Silver is also facing a supply deficit that has provided further tailwinds on the back of industrial demand.
What happened to the silver price in Q3?
Silver started the third quarter near year-to-date highs at US$36.03 per ounce.
Momentum took it to what was then a 2025 high of US$39.30 by July 22, but following that gain, the price began to retreat toward the US$36 level, ending at US$36.72 on July 31.
Silver regained some ground at the start of August, but was largely rangebound, trading around the US$38 mark. However, after Fed Chair Jerome Powell’s remarks at the Jackson Hole Economic Policy Symposium at the end of the month, the precious metal began a steady rise toward the end of the quarter.
Silver price, July 1 to October 17, 2025.
Chart via Trading Economics.
Silver broke the US$40 mark on September 1, then continued on up, rising to US$42.69 on September 15.
By September 30, it was closing in on all-time highs, reaching US$46.66. As the fourth quarter began, the price continued to climb, reaching an all-time high of US$54.47 on October 17.
Silver’s industrial demand drivers
Silver’s price gains over the past few years have been driven partially by increasing demand from industrial segments, where the metal has various applications, including in the production of photovoltaics (PVs).
An April report from the Silver Institute notes that industrial demand for silver increased for the fourth year in a row in 2024, rising 4 percent and setting a record of 680.5 million ounces.
The rise was attributed mainly to the green economy, which includes PVs, and artificial intelligence (AI).
Although the institute isn’t forecasting gains for 2025, it’s still predicting that silver industrial demand will remain near record levels, at 677.4 million ounces, with 195.7 million ounces coming from PVs.
A key reason for the high demand for solar energy is that production costs have made it more competitive than coal, gas or wind. This has increased the attractiveness of PVs for use in data centers.
Speaking at the Metals Investor Forum in Vancouver, BC, at the end of September, Peter Krauth, editor of Silver Stock Investor and author of ‘The Great Silver Bull,’ discussed the staggering rise in demand for solar energy and noted that during the 2010s, deployment exceeded expectations by 200 percent.
“Data center power demand over the next four years is expected to grow 21 percent, and AI is expected to see a 33 percent annual growth in electricity demand over the next four years,” he said.
He explained that tech companies favor solar over wind three-to-one, and nuclear at a rate of five-to-one. That’s because solar is not only cheaper than other energy forms, but also faster to permit, as long as space is available.
While PVs remain a strong demand driver for silver, it’s not the only one.
“Silver, after oil, is the commodity with the single most applications worldwide,’ said Krauth.
‘So when you say silver is indispensable, it’s irreplaceable in some ways. It has so many applications that if silver were to disappear tomorrow, it would wreak havoc on a lot of industry,’ he continued.
“Silver’s main growth driver is industrial usage. Especially when it comes to electric cars and batteries, silver is nearly irreplaceable,” she said. However, she also noted risks coming from the US and its ability to influence the global market, suggesting that with high uncertainty, commodities can be unpredictable. Additionally, Khandoshko pointed to market saturation in the tech sector, suggesting tailwinds may not be what they once were.
“The technology market is on the verge of a breakthrough, but at the same time, it is close to saturation, and the potential for a sharp increase in demand is limited. As a result, I would say that it is not worth expecting rapid leaps from silver, although for now the metal is in plus,” she said.
Silver benefiting from investment demand
Although industrial components have grown in the past few years, they aren’t the only factor that drove silver during the third quarter. Investment demand also helped push it toward record highs.
In a July report, the Silver Institute states that as of June 30, 1.13 billion ounces of silver were held in exchange-traded products, 7 percent below the all-time high set in February 2021. It attributes the rise in silver investment to geopolitical tensions and economic uncertainty as more investors turn to silver as a safe-haven asset.
Additionally, many investors view silver as undervalued compared to gold.
Since 2000, the gold-silver ratio has averaged 69:1; however, in 2025, it has been significantly higher, reaching 104:1 in May. Although it has fallen, the ratio remains above the 25 year average, reaching 79:1 in October.
“If you take US$3,700 (per ounce) gold today, and you use the average going back to 2000, that puts you already at US$54. So we’re beyond that all-time high of silver potentially pretty easily just based on that ratio,” Krauth said.
He added that he expects the gold price to continue climbing, pushing up the potential for an even higher silver price if it approaches that 69:1 average.
Silver price forecast for 2025
As suggested by the Silver Institute, Krauth and Khandoshko, silver is supported not only by supply and demand fundamentals, but also by tailwinds on the investment side.
In his talk, Krauth suggested that US$95 isn’t out of the question for silver over the next 12 to 24 months. He also said that silver producers are likely to benefit from the metal’s increasing price.
“When money starts to flow into the silver stocks, the impact can be really massive,’ he said.
‘If you take the bottom essentially of the last year and a half since late February 2024, silver’s up 105 percent and silver stocks, juniors are up 183 percent so far,’ added Krauth. Although it is difficult to predict how long a cycle will last, Krauth looked to the past and suggested there could still be significant runway ahead.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.