The silver price has continued its impressive rally this week, pushing towards levels not seen in over 13 years. The current silver price for futures stands at approximately $38.96 per ounce, marking a robust daily gain of about 4.42% or $1.65, with intraday trading ranging between $37.51 and $39.23.
This surge comes as investors flock to safe-haven assets amid rising global trade tensions and persistent supply tightness in key markets. With escalating tariffs and trade disputes involving the US and other major economies, the silver price has found strong upward momentum, attracting both financial investors and industrial buyers.
Silver Price Rallies on Global Uncertainty
Over the last month, the silver price has risen by around 5.59%, and compared to this time last year, it is up by nearly 24.68%. Such a strong annual gain underlines silver’s dual nature as both an investment hedge and a vital industrial metal. Analysts expect that silver may trade close to $37.79 per ounce by the end of the current quarter and could climb further to about $40.49 per ounce within the next 12 months if current trends hold.
In the broader market context, silver’s tight supply remains a crucial factor. Spot silver recently touched $38.47 an ounce, the highest since 2011, as London’s market shows signs of strain. The implied annualized borrowing cost for silver in London has jumped to about 4.5%, far above historical norms. Most of London’s silver is tied up in exchange-traded funds (ETFs), which restricts liquidity and fuels the ongoing price rally.
Industrial Demand and Geopolitical Risks Support Prices
The silver price is highly sensitive to factors like industrial demand, inflation trends, and geopolitical uncertainty. Silver plays a significant role in green energy technology, especially in solar panels, which continues to boost industrial demand. As the world shifts towards renewable energy, this demand is expected to keep silver markets tight in the years ahead.
Geopolitical factors are also keeping the silver price buoyant. The latest rise has been linked to global trade tensions and the resulting need for investors to hedge against economic uncertainty. The combination of tariffs, currency fluctuations, and shifting monetary policies adds further fuel to silver’s appeal as a reliable store of value.
Silver Price Around the World
Silver’s value is making headlines not only in global markets but also locally. For instance, in Pakistan, the silver price per tola is currently around PKR 3,928, while for 10 grams it stands near PKR 3,372 as of July 12, 2025. Local traders are closely watching global cues to gauge whether these prices will climb further in the weeks ahead.
Meanwhile, US silver futures contracts continue to reflect bullish sentiment, recently trading as high as $39.12 an ounce—well above spot prices in London. Such price gaps usually disappear quickly through arbitrage, but tight physical supply and higher borrowing costs have kept the spread wider than normal.
Outlook for Silver Price
Looking ahead, the silver price is expected to maintain its positive momentum, supported by tight market conditions, robust industrial demand, and lingering geopolitical tensions. While volatility can always bring corrections, many analysts believe silver could break above $40 per ounce within the year if current trends continue.
Investors should keep a close eye on macroeconomic indicators, monetary policy shifts, and developments in global trade, as these factors will continue to shape the silver price in the coming months. For now, silver remains one of the standout commodities of 2025, drawing both safe-haven seekers and industrial buyers alike.