Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
Famed precious metals manufacturer MKS PAMP expects silver to “outperform all precious metals in 2025” while skyrocketing to $42. The Swiss-based firm cites global easing cycles, deteriorating macroeconomic backdrops, robust industrial demand, and a waning dollar for the shiny metal’s projected rise.
Synchronized Rate Cuts
Following a post-pandemic inflationary wave, the world is entering a period of quantitative easing. Central banks across the globe have begun slashing rates to stimulate economic growth by lowering the cost of borrowing and weakening their currencies.
Although the Federal Reserve has paused its rate-cut cycle amid economic uncertainty, Wall Street expects a few later in the year. When interest rates fall, income-generating assets offer lower returns, making non-yielding assets like silver relatively more appealing. This effect is amplified when rate cuts happen globally and simultaneously.
Bleak Economic Climate
The economic forecast is grim with consumer spending dipping, growth forecasts waning, and recession fears mounting. Traditionally, safe-haven assets outperform during bouts of economic downturn as investors shield their wealth from inflationary pressures. MKS PAMP believes silver could benefit greatly from this capital rotation into protective and stable instruments.
“Robust & Persistent” Demand
The firm’s projected silver rally is also dependent upon sustained demand. With a dual role in industrial and investment contexts, the shiny metal enjoys two sources of consumption, compared to gold’s singular focus.
Industrial demand, which accounts for roughly 60% of total purchases, “remains robust and persistent.” This is especially true for the solar sector, which is expected to account for 100% of the annual available silver by 2050. Furthermore, retail investors are showing renewed interest in silver, especially as gold prices chart new highs.
Constrained Silver Supply
Silver mining and recycling have struggled to keep pace with surging industrial demand and reinvigorated investment interest. 2025 is on track to become the fifth year in a row where silver consumption outruns supplies. “Fundamentally, deficits are expected throughout this decade,” states MK PAMP. As a growing number of investors outbid for limited availability, prices are set up for higher movement.
Lower USD Trajectory
The USD is charting a lower course after several record highs throughout 2024. This deflation is partially attributable to shifts in monetary policy, trade war rifts, national debt unsustainability, and an ongoing de-dollarization movement. Although gold has received the greatest tailwind from this global shunning of the US dollar, silver could also see some redirected inflows.
Silver’s Upside Risk
Many analysts predict silver will yield higher returns than gold in 2025 due to the metal’s upside risk. This refers to an asset’s potential to outperform expectations. Generally, silver is better poised to beat even optimistic predictions for the following reasons:
- It remains far from all-time highs, which leaves more room to run.
- Silver tends to respond better when the Fed is trying to boost economic growth.
- The metal’s smaller market means tighter supply, putting upward pressure on prices.
If these factors continue to play out, as increasingly appears to be the case, MKS PAMP projects silver could surge to $42 by 2025.
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