Silver prices held firm around $36.40 per ounce on Monday, hovering near their highest levels since 2012, supported by robust industrial demand, ongoing supply shortages, and heightened safe-haven appeal amid geopolitical uncertainty. The metal’s growing role in solar power, electronics, and broader electrification trends now accounts for more than half of global demand, reinforcing its long-term structural importance.
On the supply side, the silver market is grappling with its fifth consecutive annual deficit. While the Silver Institute projects the shortfall will narrow by 21% in 2025, supply constraints remain a key driver of price strength. Meanwhile, the Israel-Iran conflict continued over the weekend, with both countries targeting critical energy infrastructure and fueling broader market volatility. Investors are also closely watching the US Federal Reserve’s upcoming policy decision, with the central bank widely expected to keep interest rates unchanged.
