The silver price reached highs not seen since 2012 this past year, supported by an ongoing deficit and increasing interest from investors as geopolitical concerns prompted safe-haven buying.
The white metal reached its highest point for the year in October, breaking through US$34 per ounce on the back of a shifting post-pandemic landscape and geopolitical tensions. However, Donald Trump’s victory in the US presidential election just a few weeks later buoyed bond yields and the US dollar while weighing on silver and gold.
What will 2025 hold for silver? As the new year approaches, investors are closely watching how Trump’s policies and actions could impact the precious metal, along with supply and demand trends in the space.
Here’s what experts see coming for silver in 2025.
How will Trump’s presidency impact silver?
As Trump’s inauguration approaches, speculation is rife about how he could affect the resource industry.
The president-elect ran on a policy of “drill, baby, drill,” and while his focus was largely on oil and gas companies, mining sector participants have taken it as a positive sign for exploration and development.
Trump’s promise to reduce permitting timelines for anyone making an investment of US$1 billion or more in the US has excited sector members, and could end up being a boon to silver companies in the country.
However, part of the help Trump has promised to mining companies comes from reneging on environmental commitments, including the Paris Agreement. This could end up weighing on silver.
Current President Joe Biden’s Inflation Reduction Act includes tax credits and deductions for solar projects, and there’s some concern that the incoming administration and the new Elon Musk-led Department of Government Efficiency (DOGE) could impose reversals or have the entire act gutted, hurting the solar market.
However, Peter Krauth, author of “The Great Silver Bull” and editor of the Silver Stock Investor, told the Investing News Network (INN) that Tesla (NASDAQ:TSLA) CEO Musk could end up keeping solar safe.
“Tesla bought SolarCity, which became Tesla Energy. They are an important provider of solar panels. Again, Musk’s new role heading DOGE and obvious close connection to Trump just might help mitigate risks to Tesla and its solar panel/power storage business. If that happens, in whatever form it may take, it could shelter solar panel production and sales in the US to a considerable degree,” Krauth explained via email.
He also noted that Trump’s presidency isn’t without risks and that much uncertainty still remains.
Mind Money CEO Julia Khandoshko also isn’t worried about solar demand in the US.
“Rolling back ESG policies and returning to carbon-based technologies could slow the green energy transition in the US. However, Europe and China, the main drivers of the green transition, remain committed to clean energy, which increases silver demand. Thus, global…
Read More: Silver Price Forecast: Top Trends That Will Affect Silver in 2025