Silver rose to its highest level in two months, outperforming gold as a resurgence in industrial demand offset concerns about elevated interest rates. The white metal is benefiting from its dual role as both a precious asset and a critical material for solar panels, electronics and electric vehicles.
Photovoltaic manufacturers across Asia are ramping up production ahead of anticipated policy support in China and India, lifting silver offtake for conductive paste. At the same time, semiconductor packaging and printed-circuit-board producers are restocking after a prolonged destocking cycle, adding another layer of physical demand.
The gold-silver ratio, which measures how many ounces of silver are needed to buy one ounce of gold, has fallen from recent peaks near 84 to below 79, signaling relative strength in silver. Technical traders are watching the $31.50 level as the next resistance; a breakout could target the psychologically important $32 mark.
Investment demand is also improving. Silver-backed exchange-traded products listed in Asia saw their largest weekly inflow since March, according to exchange data. Retail demand for silver coins and bars in Japan and Australia remains robust, supported by a weaker local currency against the dollar.
On the supply side, mine output from Mexico and Peru has been constrained by environmental reviews and labor negotiations, keeping the market in a structural deficit. Analysts at MetalSemi Asia expect the deficit to persist through 2025, providing a fundamental floor under prices.
