Silver hit a new 14-year peak lately as the U.S. dollar weakened amid rising risks of a U.S. government shutdown, as quoted on tradingeconomics. iShares Silver Trust SLV has gained about 15.7% over the past month (as of Sept. 26, 2025), outperforming SPDR Gold Trust GLD, which has advanced about 9%.
Below, we highlight a few reasons that can drive silver up in 2025.
Industrial Usage & ESG Transition
Silver is often considered an industrial metal. About half of the metal’s total demand comes from industrial applications. The industrial demand for silver is rising, especially on the green energy front. Silver’s industrial demand rose 4% in 2024, per the Silver Institute.
Silver is used in solar power and electric vehicle applications. China’s solar boom supported silver demand greatly, with solar cell exports jumping over 70% in the first half of the year, mainly due to sturdy shipments to India, as quoted on tradingeconomics.com.
In the automotive industry, rising vehicle sophistication, the continued (though more gradual) electrification of powertrains, and sustained investment in supporting infrastructure will likely drive higher silver demand, per the Silver Institute.
The rollout of 5G globally is another positive for silver. The electronic components that enable 5G technology depend greatly on silver.
A Weaker Dollar in the Cards?
The Fed has enacted its first rate cut of 2025 in September and will likely cut interest rates further this year. There is an 89.3% chances (at the time of writing) of a 25-bp rate cut in October, per the CME FedWatch Tool. About 68.2% market watchers expect a further 25-bp rate cut in December. A softer labor market will probably lead the Fed to walk this path.
If the Fed starts continued policy easing (albeit at a moderate pace), which could be the case ahead, given President Trump’s inclination for a lower rate and still-contained inflation rate amid tariffs, the U.S. dollar may lose strength.
Since silver is priced in the U.S. dollar, any slump in the dollar tends to buoy the metal’s prices. Invesco DB US Dollar Index Bullish Fund UUP is off 7% this year (as of Sept. 26, 2025) and has gained only 0.8% over the past month.
Higher Safe-Haven Demand
Since silver is also considered a precious metal, it offers some safe-haven appeal, though not as great as gold. With moderate level of trade tensions around, the safe-haven metal silver has remained in a sweet spot this year.
The United States is on the verge of a potential government shutdown as President Trump and Democrats do not seem to be in agreement over healthcare, federal workforce cuts, and funding priorities.
With the September 30 deadline approaching, thousands of federal jobs are at risk, and key services across the nation could face disruptions if a last-minute agreement is not reached, as quoted on FirstPost. This uncertainty has boosted silver’s safe-haven demand in the month.
ETFs in Focus
Apart from the largest silver bullion ETF iShares Silver Trust SLV, ETFs like Global X Silver Miners ETF SIL, Amplify Junior Silver Miners ETF SILJ and abrdn Physical Silver Shares ETF SIVR have also been hovering around a 52-week high.
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SPDR Gold Shares (GLD): ETF Research Reports Invesco DB US Dollar Index Bullish ETF (UUP): ETF Research Reports iShares Silver Trust (SLV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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