Silver Price

The average annual silver price rose 25% through the first six months of 2025, only marginally lower than the average gold price, which increased by 26% during the same period. The elevated gold:silver ratio in April and May also made silver appear undervalued from a long-term perspective.

Silver-Backed Exchange-Traded Products (ETPs)

With net inflows of 95 million ounces (Moz) in the first half of 2025, silver ETP investment has already surpassed the total for all of last year.

By June 30, global silver ETP holdings reached 1.13 billion ounces (Boz), just 7% below their highest level since the peak of 1.21 Boz in February 2021. Thanks to firmer silver prices, the value of these holdings hit a series of all-time highs in June, exceeding US$40 billion for the first time. Growth was relatively consistent over the first five months of 2025, before buying surged in June, which alone accounted for nearly half of the gains. As such, this marked the most significant monthly increase since the Reddit-driven silver squeeze in early 2021.

Futures Trading

On the CME, net managed money positions strengthened this year. As of June 24, the net long position was up 163% from end-2024 levels.

Institutional investors have demonstrated a strong commitment to silver as a store of value for much of this year. This is reflected in the average net longs over the first six months of 2025, which achieved their highest level since the first half of 2021.

Retail Silver Investment

Retail investment in silver has experienced contrasting fortunes so far this year. In Europe, the recovery that began in late 2024 has continued into 2025. However, this growth stems from a relatively low base, and retail investment (in volume terms) still lags behind the elevated levels seen during 2020–2022. Nevertheless, the market has benefited from a slowdown in secondary market liquidations, which has lifted demand for newly-minted bars and coins.

Indian retail investment demand remains strong, posting a 7% year-over-year gain over the first six months of 2025. This partly reflects ongoing strong price expectations.

This contrasts with the US, where selling back by retail investors remains high. This dynamic, along with weak retail purchases, has weighed heavily on new bar and coin sales as some US investors have been encouraged by multi-year high prices to take profits. Furthermore, the absence of a crisis in the US (like the collapse of Silicon Valley Bank in 2023) has reduced safe-haven purchases. Overall, US retail demand for physical silver is estimated to have fallen by at least 30% so far this year.

Looking ahead, in the coin and bar market, there is potential for strong two-way activity in the months ahead, although demand for newly-struck products may remain subdued. One area of uncertainty, however, is how investors will react should the silver price eclipse at US$40. The market could see a mixture of profit-taking by some, while other investors jump in, expecting further price gains.