Hey, everyone. I think we can all relate to feeling
overwhelmed with the constant influx of news
and information, right? It's like trying to drink
from a fire hose sometimes. Well, we're here
to help you sift through all that noise and focus
on what really matters. And today, we're diving
deep into a topic that's been generating a lot
of buzz in the financial world. Silver silver,
huh? Interesting. Yeah, it's really caught my
eye recently specifically. We're looking at this
article from February 1st 2025 title 2025 is
silver set to outshine gold and the precious
metals market You know gold usually gets all
the glory But this article makes a pretty compelling
case that silver could be the real star of the
show in 2025. Oh, that's interesting I mean gold
always seems to steal the spotlight when it comes
to precious metals So what's got people thinking
that silver might be ready to you know? step
out from gold's shadow. Well, some forecasts
are suggesting that silver could jump by over
20 percent in 2025. And that's got a lot of people
talking. But, you know, we always say this. We're
just here to explore the information, not give
financial advice. So let's really dig in and
see what's driving this optimism around silver.
Sounds good. Let's get to it. All right, so maybe
the best place to start is to look back a little
bit, you know, see how silver has been performing
recently. Makes sense. In 2024, we saw some pretty
solid gains for both gold and silver. Oh, yeah.
Yeah. Gold, well, gold had a fantastic year,
surging by 27%. Wow, 27%, that's huge. I mean,
I'm sure that dominated the headline. Absolutely
it did, but you know, silver didn't exactly sit
on the sidelines, did it? Oh, so silver had a
good year, too. It had a very respectable year,
posting a 21 % increase. Hmm, 21%, okay. So,
while it may not have outpaced gold in terms
of percentage gains, that's still a pretty significant
upward trend for silver, and I bet a lot of smart
investors probably took notice of that. 21 %
is definitely nothing to sneeze at. It's a really
solid number. So who is paying close attention
to these trends? Well, the article brings in
the analysis of Oli Hansen, head of commodity
strategy at Saxo Bank, a respected voice in the
field. Okay, Saxo Bank. Yeah, I've heard of them.
What did this Hansen guy have to say about Silver's
performance in 2024? What did he think was driving
it? Well, it's interesting because Hanson pointed
to many of the same global factors that fueled
Gold's rally as reasons for silver success in
2024. Oh, really? Like, what kind of factors
are we talking about? Well, think about all the
geopolitical tensions happening around the world.
You know, the conflicts, the friction between
countries, that uncertainty tends to make people
nervous, right? Yeah, for sure. The world can
feel pretty unstable sometimes. So in times like
that, people look for safer places to put their
money, right? It's kind of like picking a reliable
savings account when the stock market's all over
the place. Exactly. And those safe havens, as
they're called, they tend to benefit when things
get shaky. So silver, being seen as a safe haven
asset, got a boost from that same flight to safety
that benefited gold. OK, that makes sense. So
basically, in 2024, silver kind of rode the coattails
of gold, benefiting from those same global anxieties.
You got it. But here's where Silver's story takes
an interesting twist. This is where it really
starts to differentiate itself from gold. We
need to think about Silver's role beyond just
being a way to store wealth. Oh, right. I've
heard that silver is actually used in a lot of
different industries, too. Exactly. And that's
a key part of the Silver story. It has this really
interesting dual It's an investment asset, sure,
but it's also a crucial industrial metal used
in all sorts of things. And when it comes to
those industrial uses, you got to talk about
its incredible electrical conductivity. Electrical
conductivity. So silver is a good conductor of
electricity. One of the absolute best, like way
up there. Think about how easily electricity
flows through wires. Well, silver is exceptional
at that. OK, so it's a really good conductor.
But what does that mean in terms of? like real
-world applications. Well, it means silver is
essential for a lot of different industries.
The article states that in 2024, industrial applications
made up a huge chunk of silver's total demand,
55%. Wow. More than half of all the silver used
went to industrial purposes. Exactly. And get
this, in 2024, industrial demand was actually
projected to have exceeded 700 million ounces
for the first time ever. That's a pretty significant
milestone. It really shows how much silver industries
rely on. I'm curious, what sectors are using
all this silver? Good question. The article points
to some key areas, electronics for one. Just
think about all the silver components in our
smartphones, computers, all those gadgets we
use every day. Yeah, it's crazy to think how
many devices we rely on that probably use silver.
And increasingly, it's playing a big role in
the renewable energy sector, which is booming
right now. Oh, interesting. Renewable energy.
I wouldn't have thought of that. How is silver
used in renewable energy? Think about solar panels,
for example. Silver paste is used in those photovoltaic
cells that conduct the electricity. And as the
world keeps pushing for cleaner energy sources,
the demand for solar technology is only going
to keep growing. Right. That makes sense. So
more solar panels, more silver needed. It's like
a domino effect. Right. And the article really
highlights the contribution of electronics and
renewable energy to that surge in industrial
demand, suggesting it's more than just a temporary
thing. It's a real ongoing trend driven by these
huge shifts in technology and global priorities.
OK, this is all really interesting. So we've
got this picture of silver performing well in
2024, influenced by all those global economic
uncertainties and this really significant and
growing industrial demand. Yeah, we've laid some
good around work here. Now let's turn our attention
to the future. OK, let's talk about 2025. What's
in store for silver? What does the article say?
The article really emphasizes those same geopolitical
uncertainties and economic shifts we talked about
earlier. You know, the potential for things like
tariffs, which can lead to inflation and a weaker
dollar. All of that makes safe haven assets like
silver more attractive. Right, because if the
dollar weakens, people want to find other things
to hold their value. It's a natural response.
Exactly. But for silver specifically, it seems
like the energy transition is a really important
piece of the puzzle and not just for 2025, but
in the years to come. Yeah, the transition to
cleaner energy seems to be a huge driving force
for a lot of things these days. How does that
impact silver? Well, think about all the investments
in power grid infrastructure that are happening
right now. Silver is really important for that
because of its superior conductivity. So it's
needed for the grid, too. Okay, so that makes
sense. And of course, there's the increasing
adoption of those renewable energy technologies,
particularly solar power, which we talked about
earlier. Right. Solar panels need silter, too.
All of this is pointing to a positive long term
outlook for silver. It's not just about being
a safe haven anymore. It's playing a vital role
in these crucial industries. You got it. And
when we connect that to the bigger picture, you
know, with all these global efforts to tackle
climate change, that demand for silver is likely
to keep going up. So all this leads to the question
of what kind of price are we actually looking
at for silver in 2025? Right. Get to the numbers.
What's the expert predicting? OK, so Ali Hanson,
the expert from Saxo Bank, is actually pretty
optimistic. He thinks that the combination of
that sustained investor demand fueled by all
those macroeconomic uncertainties and the strong
industrial demand we've been talking about, that
could all put your silver prices higher. So he's
bullish on silver. But does he actually put a
number on it? He does. He gives a potential upside
target of $38 per ounce for 2025. $38. Wow. That
would be a significant jump from what it was
when the article was published. Absolutely. It
represents a 23 % increase according to the article.
But Hanson makes an interesting point here. He
says we shouldn't just get fixated on hitting
that exact price. The real takeaway is that silver
has this unique ability to act as both a hedge
against economic uncertainty, kind of like gold,
and it has the potential for those rapid price
increases because of the strong and growing industrial
demand. Oh, I see. So it's like a double whammy.
It's got that safe haven appeal, but also the
strong industrial demand backing it up. Exactly.
It kind of offers the best of both worlds, in
a way. OK, so let's recap. We've talked about
how silver did pretty well in 2024, driven by
global economic factors and that surprisingly
strong industrial demand. Right. And looking
ahead to 2025, those geopolitical uncertainties
are probably going to stick around. And that
energy transition? Well, that's only gaining
momentum. So all that combined is leading experts
like Oli Hansen to predict a pretty positive
outlook for silver. It sounds like silver is
really coming into its own, moving beyond just
being a secondary player in the precious metals
market. I think you're right. As we wrap up our
deep dive into silver's potential in 2025, it's
clear that while gold might get most of the attention,
silver has its own unique and compelling story.
Its recent performance, combined with those vital
and expanding industrial applications, makes
it a lot more than just an afterthought. It does
make you think, given silver's crucial role in
things like renewable energy, and its ability
to act as a safety net in times of economic uncertainty?
How might all those advancements in technology
and those massive global infrastructure projects,
you know, the ones planned for the coming years,
how might that impact silver's value? Even regardless
of its direct price relationship with gold, it's
definitely something worth considering as we
look to the future. Food for thought, for sure.
Alright, that's going to do it for our deep dive
into silver. We'll be keeping a close eye on
this fascinating metal. Yeah, this will be interesting
to watch. Until next time, everyone.