FX.co ★ Silver Steady Near 13-Year Highs

As of Monday, silver prices remained stable at approximately $36.40 per ounce, nearing their peak since 2012. This stability is underpinned by strong industrial demand, persistent supply shortages, and an increased appeal as a safe-haven asset in light of ongoing geopolitical tensions. Silver's expanding application in solar power, electronics, and broader electrification contributes significantly to more than half of the global demand, highlighting its critical importance in the long-term structural market. On the supply side, the silver market is experiencing its fifth consecutive year of deficit. Although the Silver Institute anticipates a reduction in the shortfall by 21% in 2025, supply constraints continue to be a significant factor in maintaining price levels. Additionally, the ongoing conflict between Israel and Iran, which saw both nations targeting vital energy infrastructures over the weekend, adds to market volatility. Investors are also paying close attention to the forthcoming policy decision by the US Federal Reserve, which is expected to maintain current interest rates.