The price of silver is rising due to a combination of factors including a global supply shortage struggling to keep up with surging demand, especially from industrial sectors like electronics, solar panels, electric vehicles, and green energy investments. Physical silver inventories, particularly in key trading hubs like London, are depleting, driving prices to premiums and creating a historic short squeeze in the market. Investor interest as a safe- haven amid economic uncertainty, inflation concerns, and currency weakness also supports the bullish momentum. Additionally, disruptions in copper mining—where silver is a by-product—further squeeze silver supply. Analysts, including Bank of America, forecast silver prices could rise even further, potentially reaching $65 per ounce by 2026 due to these structural deficits and ongoing strong demand.

Key drivers for silver's rising price:

• Strong industrial demand from green energy, electronics, and manufacturing.
• Persistent supply shortages and lower inventories globally.
• Increasing investor and ETF demand as a hedge amid geopolitical and economic uncertainties.
• Shortages of physical silver causing market tightness and higher borrowing costs.
• Reduced supply due to closures of copper mines and mining constraints.
• Inflation and currency concerns boosting safe-haven buying.

Silver is currently experiencing a rare market condition of high demand and constrained supply, fueling rapid price increases and heightened volatility. This combination is pushing silver prices to multi-decade highs and is expected to sustain the bullish trend into the near future.