Silver Soars as Analysts see Demand Surge Signalling Start of Bull Market
Of all the commodities that have traded upwards on the back of the global trade tariff war, it could be argued that silver’s has been one of the more spectacular moves.
The silver price has risen 5.59% over the past month to be nearly 25% higher than at this time last year—and, according to Kitco Metals, it doesn’t look like stopping anytime soon.
Kitco noted last week that the continued growth in demand signalled “the official start of silver’s bull market.”
Silver Bull Market
Financial research platform Seeking Alpha believes that silver’s sharp correction after the recent tariff news had created a strong buying opportunity, with technical and fundamental factors aligning for further upside.
According to FXStreet, inflows of silver into exchange-traded fund (ETFs) through the first half of 2025 powered past the total for the entirety of 2024.
95 million ounces of silver flowed into ETFs globally during those six months, pushing total fund holdings to 1.13 billion ounces, according to data compiled by the Silver Institute.
Gold Still In Demand
The World Gold Council (WGC) believes gold has a strong chance to continue its winning ways.
The WGC said gold’s record-setting 26% increase in the first half of 2025 was driven by a combination of a weaker US dollar, rangebound rates and a highly uncertain economic environment, resulting in strong investment demand.
The WGC suggested in its recent half-year review that, while it expects some of the drivers to persist, gold’s next move remains highly dependent on multiple factors including trade tensions, inflation dynamics, and monetary policy.
‘Steady Finish’
“Consensus expectations suggest a relatively steady finish for gold with moderate upside potential if macro conditions hold,” the WGC noted.
“Gold could also be partly supported by contributions from new institutional investors such as Chinese insurance companies.”
“A more volatile geopolitical and geoeconomic scenario could push gold significantly higher, particularly if more substantial stagflation or recession risks materialise and investor appetite for safe haven assets grows.”