Silver Institute Forecasts Long-Term Bull Market Driven by Strong Industrial Demand

This analysis is based on the Silver Institute’s report published on December 15, 2025 [1], which forecasts a long-term bull market for silver due to strong industrial demand across high-growth sectors. The report identifies solar energy, EVs, and AI/data centers as key drivers, with EVs projected to overtake internal combustion engine (ICE) vehicles as the primary source of automotive silver demand by 2027, accounting for 59% of the market by 2031 [1]. Global automotive silver demand is expected to grow at a 3.4% CAGR between 2025 and 2031 [1].

In the short term, the report coincided with a 2.31% increase in silver futures (Dec 2025) to $62.79/oz [2], and a 2.42-2.78% rise in the iShares Silver Trust (SLV) ETF to $57.46-57.66 [3]. However, major silver mining stocks showed mixed performance: Pan American Silver (PAAS) closed slightly down at $49.52 [4], while Wheaton Precious Metals (WPM) fell 1.06% to $116.28 [5], potentially due to operational costs, geopolitical risks, or broader market conditions [1].

• A structural shift in silver demand is underway, from traditional investment uses toward industrial applications in high-growth sectors [1].
• The report reinforces silver’s dual role as both an industrial metal and a safe-haven asset, enhancing its market appeal [1].
• Mixed mining stock performance highlights potential disconnects between sector demand outlooks and individual company operational factors [1].

• Opportunities
  : Growing clean energy and digital economy sectors create long-term demand catalysts for silver [1].
• Risks
  : Supply chain disruptions in silver mining/refining, technological advancements reducing silver usage in key applications, and competition from alternative materials could moderate demand growth [1].
• Decision-making context
  : Investors should consider supply-side data, Federal Reserve interest rate decisions, and global economic conditions alongside the demand outlook [1].

The Silver Institute’s report provides a bullish long-term outlook for silver, driven by industrial demand from solar, EV, and AI sectors. Short-term price increases were observed in silver futures and the SLV ETF, with mixed results for mining stocks. Critical factors to monitor include supply chain stability, technological innovations, and broader economic conditions.