Is Now a Good Time to Buy Silver? [February 2025]

Silver is likely undervalued in early 2025, meaning its current price may not reflect its true potential. Strong industrial demand, inflation concerns, and possible supply shortages suggest that prices could rise in the near future. Historically, silver has performed well in times of economic uncertainty, making it a compelling investment.

With prices still below historical highs, now could be a smart time to buy silver before demand pushes them up. If you’re looking to diversify your portfolio or hedge against inflation, silver’s upside potential makes it worth considering. This article explores key market trends, expert opinions, and risks to help you decide.

Note: This article examines current market conditions and speculations based on the author’s findings—it’s not meant to be financial advice. Be sure to do your own research and consult qualified experts before making financial decisions.

Should you invest in silver now?

Silver plays a unique role as both a safe-haven asset and an industrial commodity, making it a versatile investment option. In 2025, these dual roles will be even more significant as global markets navigate uncertainty.

Silver prices fluctuated significantly throughout 2024 due to inflationary fears, geopolitical tensions, and fluctuating demand from industries like renewable energy and electronics. 

As of early 2025, the sentiment remained cautiously optimistic, with many analysts viewing silver as undervalued.

This is because, historically, silver had a 70:1 price ratio compared to gold. Today, it is around an 85:1 ratio, signaling that silver may be undervalued.

Tip

The gold-silver price ratio measures how many ounces of silver it takes to buy one ounce of gold, based on their respective spot prices, helping investors assess relative value and market trends. For example, a 70:1 ratio means it takes 70 ounces of silver to buy one ounce of gold—indicating that gold is 70 times more valuable than silver.

Several factors influence the silver market today:

• Inflation and interest rates: Persistent inflation concerns drive investors toward tangible assets like silver. Meanwhile, central banks’ interest rate policies continue to impact silver’s short-term volatility.
• Geopolitical events: Global tensions and conflicts can boost demand for silver as a hedge against instability.
• Industrial demand: Silver’s use in solar panels, electronics, and medical applications contributes to long-term demand growth.

Another key factor to consider is the potential supply squeeze. The growing adoption of solar energy is expected to increase silver demand significantly in the coming years. 

Some analysts predict that if mining output can’t keep up, silver prices could surge. Plus,  ongoing global de-dollarization efforts by certain countries may boost demand for alternative stores of value like silver.

Based on current conditions, now could be a good time to buy silver for those seeking to diversify their portfolios or hedge against inflation.

When I work with clients to decide if they should invest in gold or silver to diversify a portfolio or hedge inflation, we will assess the investor’s overall investment objectives and risk tolerance, emphasizing the importance of understanding differences in volatility and liquidity. 

Historically, gold has served as a reliable hedge against inflation and a source of stability, whereas silver, due to its cyclical nature, may offer greater short-term opportunities. If incorporating precious metals aligns with the client’s portfolio strategy, I may recommend allocating a balanced mix of gold and silver, typically not exceeding 5–10% of their total investment portfolio.

Is now a good time to invest in silver or gold?

Gold and silver may both be precious metals, but they aren’t made equal. Gold is traditionally viewed as a more stable store of value, while silver offers higher volatility and growth potential thanks to its industrial applications.

As Brandon Thor, founder of Thor Metals Group, explains, “Silver and gold are brother and sister in the sense that they generally move as a tribe. The same macro factors driving gold prices also affect silver prices. Simply put, there will never be a situation where gold increases 80% and silver dips or vice versa.” 

Where the metals differ, Thor says, is how they react to specific market events—offering examples in 2008 when gold more than doubled in value, but silver went up “an eye-watering 500%.” Similarly, in 2011, gold lost 50% of its value, while silver lost almost 80%.

“It is fair to say that gold and silver are generally driven by the same factors. However, silver is much more volatile in both the upside and downside,” Thor says.

As of early 2025, gold prices reached an all-time high, but silver has lagged behind. Due to its relative affordability and potential for industrial-driven growth, gold could be a good choice for risk-tolerant investors. 

If you’re seeking long-term appreciation, silver may have a better risk-reward ratio than gold.

Read More

Is now a good time to buy gold?

Best time to buy silver historically

Silver prices follow cyclical trends, often spiking during:

• Economic uncertainty and rising inflation
• Seasonal patterns—prices tend to dip in summer and rally in late fall/winter
• Lower summer trading, followed by increased industrial and holiday demand later in the year

Silver also performs well when real interest rates are low or negative. Some historical price surges happened during:

• The late 1970s (high inflation and economic instability)
• The early 2010s (currency devaluation and market uncertainty).

While historic patterns are important, other market-specific factors—such as industrial demand for green technologies such as solar panels, electronic vehicles, and electronics—may push silver higher than expected. 

Other factors like central bank policies, the U.S. dollar’s strength, and geopolitical events can also create buying opportunities.

The rise of solar energy, electric vehicles, and electronics continues to boost silver’s long-term demand. You should also consider macroeconomic indicators like central bank policy, the strength of the U.S. dollar, and geopolitical events, which can trigger buying opportunities outside traditional seasonal trends.

This begs the question…

Will silver rise in 2025?

Analysts are divided on whether silver will experience significant gains in 2025. Some forecasts suggest prices could climb as high as $50/oz as demand for silver in renewable energy and electronics continues to grow, while others believe it will pull back.

These factors could drive silver prices higher in 2025:

• Renewable energy expansion: Silver is a critical component in photovoltaic cells for solar panels, and the global push toward clean energy could boost demand. The International Energy Agency (IEA) projects that solar power installations will continue growing exponentially and potentially strain the silver supply.
• Industrial applications: Beyond energy, silver is widely used in electronics, automotive manufacturing, and healthcare. Emerging technologies, including EVs and 5G networks, rely on silver for its conductivity and durability.
• Economic instability: If inflationary pressures persist, silver could benefit as investors seek safe-haven assets. Historical data shows silver tends to spike during periods of economic turmoil or geopolitical tension.

However, there are some risks to consider:

• Strength of the U.S. dollar: A stronger dollar typically suppresses silver prices. The dollar saw a slight dip in 2020 but has surged since then and remains quite strong, which could limit silver’s upside.
• Interest rate increases: Higher rates could reduce silver’s appeal by making other investments more attractive. The Federal Reserve recently paused interest rate cuts, which could signal potential rate increases in the future.

While some analysts are optimistic about silver, you should remain cautious and consider the potential risks before investing.

“Currently, silver prices are misaligned with its limited supply,” Thor says. “As financial uncertainty grows and investors recognize the risks of excessive U.S. money printing and debt, they are increasingly turning to safe havens like gold and silver, particularly as protection against inflation.

“I see a perfect storm forming, where gold’s rising value prices out many investors, pushing them toward silver, while others perceive silver as having greater upside due to its relatively lower breakout compared to gold.”

Is silver a good investment for diversification? 

Silver can be a valuable addition to a diversified investment portfolio. Unlike stocks or bonds, silver often performs well during economic downturns, offering a hedge against volatility.

Compared to gold, silver’s lower price and industrial utility make it more accessible to average investors. However, its price can be more volatile, so it’s essential to balance silver investments within a broader portfolio strategy.

Is it wise to invest in silver?

Investing in silver can be a wise decision depending on your financial goals, risk tolerance, and market outlook. Like any investment, it has pros and cons. Here’s a breakdown to help you determine if it’s right for you.

Pros

• Hedge against inflation

  Precious metals like silver tend to maintain value during periods of inflation, making it a good hedge against the devaluation of fiat currency.

• Tangible asset

  Unlike stocks or bonds, silver is a physical asset that you can hold and store, giving some investors peace of mind.

• Diversification

  It offers diversification within your portfolio, especially if your investments are heavily weighted in stocks, bonds, or real estate.

• Industrial demand

  Silver has many industrial uses (electronics, solar panels, medical applications), so its value can be supported by rising demand in those sectors.

• Liquidity

  Silver is a highly liquid market, making it relatively easy to buy or sell.

Cons

• Price volatility

  Silver prices can be highly volatile, making it riskier than gold or other stable assets.

• Storage and security

  Holding physical silver requires secure storage and may incur storage costs.

• Lack of yield

  Unlike stocks or bonds, silver does not generate income (no dividends or interest).

• Market manipulation

  Silver prices are sometimes affected by speculation and manipulation in the market, adding to uncertainty.

• Industrial downturns

  If industrial demand slows due to economic downturns, silver prices can be negatively affected.

Essentially, investing in silver is a wise decision if…

• You’re in a period of high inflation or declining currency value.
• There’s heightened geopolitical or economic uncertainty.
• You’re seeking long-term diversification alongside gold or other assets.

Ultimately, whether silver is a wise investment or not depends entirely on your investment goals and a little bit of luck. You should invest in silver if it aligns with your goals.

If you prefer gold over silver, check out our top recommendations for gold dealers.

The primary objective of incorporating gold and silver into a portfolio is to support clients in achieving key financial goals, such as portfolio diversification, inflation protection, and long-term retirement planning. However, I do not recommend investing in gold or silver to fund short- to mid-term financial objectives due to their price volatility and long-term nature as a store of value.

Ways to invest in silver

There are several ways to invest in silver, each with its own pros and cons:

1. Buy physical silver (bullion and coins)

Physical silver, such as bars and coins, offers direct ownership. American Hartford Gold is a top-rated dealer, known for competitive pricing and secure delivery.

• Pros: Tangible asset, no counterparty risk.
• Cons: Storage costs, potential liquidity issues, theft.

Owning physical silver can provide peace of mind in turbulent markets, but it’s a good idea to consider secure storage options and additional insurance for larger holdings.

2. Silver IRAs

Precious metal IRAs allow investors to hold physical silver within a tax-advantaged retirement account.

• Pros: Tax benefits, long-term investment.
• Cons: Fees and restrictions.

Silver IRAs are ideal for investors with a long-term horizon who want exposure to precious metals in their retirement portfolios. Be aware of potential setup fees and annual maintenance costs.

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Best Gold IRA Companies

3. Silver ETFs and mutual funds

ETFs offer exposure to silver prices without the need for physical storage.

• Pros: Liquidity, easy to trade.
• Cons: Management fees, no physical ownership.

Silver ETFs are a convenient way to invest in silver, especially for those who want short-term flexibility. However, they don’t provide the security of holding the physical metal, and returns may be affected by fund management fees.

4. Silver mining stocks

Investing in mining companies provides indirect exposure to silver prices.

• Pros: Potential for high returns.
• Cons: Business risks, stock market volatility.

Silver mining stocks can be highly profitable during periods of rising silver prices, as they tend to have a higher multiple on returns compared to the physical asset. However, mining stocks carry risks related to company management, operational costs, and regulatory challenges. Do your research before investing.

5. Futures contracts

Futures allow investors to speculate on silver price movements.

• Pros: Leverage, high potential gains.
• Cons: High risk, requires expertise.

Futures trading is best suited for experienced investors who understand the complexities of derivatives. While it offers the possibility of significant gains, it also comes with high risk and potential losses due to market volatility.

What is the best way to invest in silver?

Given that the ratio of silver to gold is a massive 85:1, now may be a good time to buy silver. But what’s the best way to invest? Here’s a chart to help you decide…

If…	Invest In…
You want direct ownership	Physical silver (bullion/coins)
You want retirement tax benefits	Silver IRA
You prefer liquidity and flexibility	Silver ETFs
You’re comfortable with stock risks	Mining stocks
You have experience with derivatives	Futures contracts

What is the future of silver? 

Silver’s future looks promising due to its growing role in renewable energy, emerging technologies, and potential supply constraints. As solar panel installations rise globally, silver demand could increase. The International Energy Agency (IEA) predicts continued growth in solar technology, which may push prices higher.

Many silver mines face declining ore grades, making extraction more expensive and less efficient. This could create supply shortages, especially if new mining projects encounter environmental or regulatory delays. Limited supply alongside rising demand could put upward pressure on silver prices.

Technological innovation also plays a key role. Silver’s use in advanced electronics, medical devices, and 5G infrastructure is expanding. Electric vehicles and energy storage technologies rely on silver, further boosting its long-term value across multiple industries.

Finally, broader economic factors like dollar strength, inflation, and interest rate policies will shape silver’s market performance. A weaker dollar often drives silver prices up by attracting international investors. Persistent inflation could also increase demand, as silver serves as a hedge against currency devaluation.

The physical market is based on supply and demand. Frankly, there is not enough silver supply to support any meaningful increase in demand. When demand for silver increases (and I do believe it will) the physical market will drive silver prices up significantly.”

– Brandon Thor, founder, Thor Metals Group

Overall, silver is poised to remain a valuable asset. Its use in industrial utility and investments makes it an important consideration for investors seeking long-term portfolio growth and stability. Now very well could be a good time to buy silver.