Silver Demand Trends in 2025
Global silver demand is forecast to remain broadly stable in 2025 at around 1.20 billion ounces, with industrial use hitting a new record high. This is driven by ongoing growth in green technologies (solar panels, EVs), electronics, and AI-related products.
Industrial demand is expected to surpass 700 million ounces for the first time, while demand for coins and bars is rebounding in Western markets after a sharp drop in 2024.
Despite stable demand, the silver market remains in a structural deficit for the fifth year, with a 2025 shortfall projected at 117.6 million ounces-though this deficit is narrowing due to increased mine supply, especially from Mexico and Poland.
Which Country is Stockpiling Silver?
China is aggressively stockpiling silver in 2025.
China is purchasing large quantities of unrefined silver concentrate directly from Latin American refiners and miners, securing supply before it reaches the global spot market.
This strategy is driven by surging domestic industrial demand (especially for solar panels) and declining Chinese mine output.
How the China–Taiwan Conflict Affects Silver
Geopolitical tensions between China and Taiwan-and broader US-China trade frictions-are major drivers of silver price volatility and demand in 2025:
Safe-haven demand: Investors are turning to silver (alongside gold) as a hedge against geopolitical risk, trade war escalation, and potential supply disruptions.
Industrial risk: Tariffs and potential conflict threaten global electronics and solar manufacturing supply chains, both of which are major consumers of silver.
Strategic stockpiling: China’s accumulation of silver is partly a defensive measure in case of sanctions, trade blockades, or conflict with Taiwan and the US, ensuring access to critical industrial inputs.
Market impact: These factors have led to sharp price swings, with silver rallying nearly 4% in a single day during recent trade war escalations. Physical shortages are emerging, and above-ground inventories are at multi-year lows.
Summary Table
China’s industrial growth & stockpiling Increases global demand, tightens supply
China–Taiwan–US tensions Boosts safe-haven and strategic demand
Trade war/tariffs Disrupts supply chains, adds volatility
Physical inventory depletion Supports higher prices, risk of shortages
In summary:
Silver demand in 2025 remains robust, especially for industrial uses. China is the leading country stockpiling silver, buying directly from Latin America to secure supply amid falling domestic output and rising demand. The China–Taiwan conflict and US-China trade tensions are key catalysts, fueling safe-haven buying, strategic accumulation, and price volatility. These dynamics are likely to keep silver in a structural deficit and support elevated prices throughout the year.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.