Silver prices set to soar in 2025? What UAE buyers and investors must know

Global silver market is expected to record a seventh consecutive annual deficit in 2025

Last updated: August 07, 2025 | 04:04

3 MIN READ

Is it worth spending your hard-earned money on silver as opposed to gold?

Pexels / Terje Sollie

Dubai: Silver is fast becoming one of the most watched commodities of 2025, and UAE investors, jewellery buyers, and electronics shoppers may all feel the impact.

After a strong rally that has taken global prices to their highest levels in 14 years, the outlook remains tilted toward further gains—driven by tight global supply, strong demand from green technologies, and renewed investor interest.

Mirrored silver prices

As of early August, silver is trading near $36.60 (USD/oz), down from recent highs of $39. The price is attempting to stabilize after a sharp sell-off, but remains well above levels seen in recent years.

UAE gold and jewellery retailers often mirror these international price shifts in silver jewellery and investment-grade bars, making it important for local consumers to keep a close watch on these movements.

While several analyst predictions for 2025 put silver between $30 and $38 an ounce, some forecasters citing even higher potential due to rising industrial and investment demand.

Also Read: Gold is beating silver: What smart investors should do about it

Silver price can rise more

According to multiple global financial institutions and commodities analysts:

Ongoing supply deficits: The global silver market is expected to record a seventh consecutive annual deficit in 2025. This supply strain has been building since 2016, with global mine supply shrinking by 7% in that period, according to Sprott and data from The Silver Institute.
Industrial demand boom: Silver plays a key role in high-growth sectors like solar power, electric vehicles, and electronics. Solar energy alone accounted for 17% of global silver demand in 2024, tripling over the past decade.
Investor interest and ETPs: In the first half of 2025 alone, silver-backed exchange-traded products (ETPs) saw net inflows of 95 million ounces—removing large volumes from the open market and increasing scarcity.
Safe-haven appeal: Silver continues to draw attention as a lower-cost alternative to gold for investors seeking stability amid global economic uncertainty. It is now being increasingly viewed as an inflation and volatility hedge.

Some see 'Silver Squeeze'

With less freely traded silver on the market and continued buying pressure, analysts at Sprott suggest the market is at risk of a "silver squeeze"—a scenario where small increases in demand could cause disproportionate price surges. This dynamic is especially relevant to retail buyers, as silver is more sensitive to retail flows than gold, which is heavily influenced by central banks.

Analysts predictions

Citigroup recently upgraded its short-term silver forecast to above $40/oz, citing tightening supply.
Deutsche Bank sees silver potentially reaching $38 by year-end 2025.
GSC Commodity Intelligence believes silver could break past $50/oz, driven by its critical role in energy transition technologies.

Meanwhile, platforms like Investing.com caution about price volatility, expecting silver to oscillate between $30 and $35, with occasional pullbacks.

UAE residents, know this

For UAE investors considering silver for their portfolios or shoppers planning silver jewellery purchases, here are key takeaways:

Timing matters: The current price consolidation may offer entry points for long-term buyers.
Investment-grade silver is gaining traction among global investors—UAE-based bullion dealers may see increased interest.
Retail pricing in the UAE may rise, especially for jewellery, if international prices break higher and if the US dollar weakens.

Silver affordable, for now

Despite recent gains, analysts say silver is still trading at a deep discount to gold. Historically, gold has priced around 67x silver, but today’s ratio is closer to 91x. With silver production at just 1/7th the level of gold, some analysts argue the price gap could narrow significantly.

As global demand accelerates and supply remains tight, UAE residents may see silver not just as a decorative metal—but as an accessible store of value with room to grow.

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.