(Kitco News) – Silver investment skyrocketed in the first half of 2025, with geopolitical and economic uncertainty driving the precious metal’s price to its highest level in 13 years, according to the latest report from the Silver Institute (SI).
“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,” SI analysts noted in the report. “The elevated gold:silver ratio in April and May also made silver appear undervalued from a long-term perspective. Meanwhile, improving sentiment in the industrial metals sector, following the start of trade talks between China and the US, provided additional price support.”
The gray metal's standout price performance drew a great deal of attention from the investment community in H1 2025.
“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,” they noted. “This surge reflects increasingly bullish price expectations.”
Global silver ETP holdings reached 1.13 billion ounces by June 30, only 7% below the peak of 1.21 billion ounces 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,” the analysts noted. “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.”
The futures market also reflected the increased investor appetite, with net managed money positions on the CME surging higher this year.
“As of June 24 (the latest available data at the time of writing), the net long position was up a staggering 163% from end-2024 levels,” they wrote. “Notably, 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.”
The numbers were more mixed on Main Street, however, with retail silver investment seeing contrasting performances so far this year. “In Europe, the recovery that began in late 2024 has continued into 2025,” the analysts said. “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.”
The Silver Institute noted that Indian retail investment demand has remained strong with a 7% annualized gain over the first half of 2025, which they said partly reflects ongoing strong price expectations.
“This contrasts with the US, where selling back by retail investors remains high,” the analysts said. “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 book 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 silver is estimated to have fallen by at least 30% so far this year,” they added.
SI analysts see potential for strong two-way activity in the coin and bar market over the coming months, though they warn that “demand for newly struck products may remain subdued.”
“One area of uncertainty, however, is how investors will react should the silver price eclipse US$40,” they concluded. “The market could see a mixture of profit-taking by some, while other investors jump in, expecting further price gains.”
Silver prices are delivering another strong performance on Thursday morning, with spot silver reaching the very edge of $37 per ounce 15 minutes before the North American open.
Spot silver last traded at $36.831 for a gain of 1.24% on the daily chart, and is approaching its earlier highs once again.
