By Mike Visser | Resource Digest – Mining & Industry Insights | April 2025
Silver prices have taken a sharp turn south, sliding to their lowest level in over eight weeks as global markets digest the impact of renewed U.S. tariffs and mounting recession fears. On Friday, spot silver (XAG=) dropped to $31.00 an ounce — a nearly 9% fall since U.S. President Donald Trump’s latest trade announcements on Wednesday.
For stakeholders across the mining, industrial, and energy sectors, the development highlights a critical intersection: the dual nature of silver as both a precious and industrial metal. While gold has soared to fresh records — topping $3,167.57 an ounce this week — silver has lagged, hindered by its deep ties to manufacturing and electronics.
“Silver’s price behavior is signaling more concern about factories than finance,” said Aakash Doshi, Global Head of Gold Strategy at State Street Global Advisors. “It’s gold for safety, but silver depends on production lines and purchasing power.”
According to the Silver Institute, industrial applications such as photovoltaics, automotive components, and electronics accounted for more than half of the 700.2 million troy ounces of global silver demand in 2024. That heavy exposure is now working against silver amid faltering manufacturing data and trade uncertainty.
Trump’s sweeping tariff measures have rekindled global trade fears, sending shockwaves through commodity markets and industrial metals alike. Silver’s movements are now closely shadowing base metals like copper and nickel — both of which are similarly under pressure from weakened global demand.
“The upside provided by heightened safe-haven demand will be capped by silver’s negative industrial angle,” explained Ricardo Evangelista, Senior Analyst at ActivTrades. “We expect prices to remain range-bound in the near term.”
The widening gold-silver ratio — now sitting at 100, the highest since June 2020 — paints a clear picture of market divergence. This metric reflects how many ounces of silver are required to purchase one ounce of gold, and its increase underscores silver’s underperformance relative to its traditionally more valuable counterpart.
Yet there is cautious optimism among some analysts. Exchange-Traded Funds (ETFs) focused on silver have seen continued inflows, suggesting investors still see long-term value in the metal — particularly if industrial sentiment stabilizes.
“Sustained ETF demand will help silver keep pace with gold in the short term,” said Han Tan, Chief Market Analyst at Exinity Group. “But that support could evaporate quickly if the economic outlook worsens.”
For miners, smelters, and traders, the current climate serves as a wake-up call. Diversification, cost management, and market agility will be essential as volatility continues across both precious and industrial commodity markets. While gold enjoys the spotlight, silver’s story remains complex — and one to watch closely as the global trade narrative unfolds.
🔍 Quick Stats
- Current Silver Price: $31.00/oz
- Last Peak: $34.87/oz on October 22, 2024
- Global Silver Demand (2024): ~700.2 million oz
- Gold-Silver Ratio: 100 (Highest since June 2020)
