Silver breaks symbolic $40 mark in "a massive moment for those that follow the metal"
IN what one trader has described as “a massive moment for those that follow the metal”, silver broke the symbolic $40 mark on Friday and again this morning, with one expert saying “a reasonable target for this cycle is $60–$70 before year-end, with silver likely to outpace gold in percentage terms”.
Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said that two forces are combining to push silver higher: "First, official buyers are back. Central banks appear to be treating silver as money again, adding to holdings in a market where investors still have very low exposure to precious metals, so even modest new demand can move the price.
"Second, near-term supply looks tight. The spot price briefly rose above near-dated futures (a flip that signals immediate scarcity), and silver has just been added to the US draft list of “critical minerals”, which casts it as strategic rather than merely cyclical.
"The wider backdrop is also helpful. Equity markets look fragile beneath the surface, the Fed is shifting towards rate cuts, the dollar is weakening, and long-dated bonds remain unstable. In past cycles that mix has pushed money towards metals. How far can this run?
"The next real test is the old $50 area from 1980/2011. If that level breaks, a reasonable target for this cycle is $60–$70 before year-end, with silver likely to outpace gold in percentage terms.”
Prem Raja, Head of Trading Floor at Currencies 4 You, said silver breaking $40 was a significant milestone: “Silver has officially breached $40, a massive moment for those that follow the metal. There have been several reasons why silver has gained momentum over the past year, including a supply deficit, huge demand from an industrial and technological perspective and, most importantly, the rally in gold.
"Typically, investors buy silver once gold has risen as a beta, and recently we have seen gold fall while silver surges, so this remains true.”
"You can get exposure through physical silver, ETFs, mining stocks, or even silver-linked crypto. Each has its pros and cons depending on how hands-on you want to be. Silver does carry more volatility, but its blend of industrial use and safe-haven appeal makes it an interesting diversifier, especially in today’s uncertain environment.”
Samuel Mather-Holgate, Independent Financial Adviser at Swindon-based Mather and Murray Financial, commented: “When the world economy teeters on the precipice, investors flock to intrinsically valued precious metals as they don’t know what will happen with companies earnings if people stop trading due to tariffs and taxes. With problems both sides of the Atlantic, the most sensible metal to invest in is one with multiple uses, and an expanding demand. Silver meets these requirements enthusiastically.”
John Woolfitt, Director at Atlantic Capital Markets, said the drive in the price of silver is being fuelled by two key factors: “Firstly, silver's position as a safe haven asset is clearly appealing in current times. Secondly, there is persistent demand for it as an industrial metal, coupled with constant supply deficits. Silver is a key component in the manufacture of solar panels and EV's, with the two sectors alone using over 300m tonnes of silver over the past 12 months.
He continued: “Though the case is bullish, buying an asset whilst at its highest price in 13 years can be a dangerous move in the short term. However, if we continue to drive forward with EV's and solar panels, demand will continue to be there, adding further strength to the price.”
While accepting there's certainly potential for upside, Scott Gallacher, Director at Rowley Turton, sounded a note of caution: “Silver’s recent rally is being fuelled in part by gold’s record-breaking run—investors are now looking for the “next one,” and silver is often seen as the cheaper, catch-up trade. Historically, it lags gold before surging, so some see this as silver’s time to shine.
“That said, anyone buying in now should be cautious. You may be arriving late to the party, with silver already at a 13-year high. And while silver’s mix of safe-haven status and industrial demand—from solar panels to electric vehicles—is compelling, it also makes it more volatile. There's potential upside, but it won’t be a smooth ride.”
