Silver Flexes Bullish Muscle: Targeting Fresh Highs Amidst Soaring Demand

Silver has decisively broken through critical resistance levels, signaling the official onset of a robust bull market. Analysts pinpoint a convergence of bullish technicals, tightening supply-demand dynamics, and a pronounced historical undervaluation, all propelling silver towards a potential retest of its $50 per ounce historical high.

While gold consistently hit records, silver struggled below its $32-$35 resistance. However, this changed significantly. As of July 16, 2025, COMEX silver futures are trading at $37.82020/oz, after hitting an intraday high of $37.84500. The metal has seen a +0.29% gain today, reinforcing its breakout from a four-month consolidation phase, a move also echoed by copper’s recent bull market entry.

Silver’s fundamentals reveal a stark contradiction: dwindling supply against burgeoning demand. A global deficit of 182 million ounces is projected for 2024, with another 117.6 million ounces in 2025. Mine production has declined for a decade, while demand from solar panel manufacturing has nearly tripled in four years. The presence of substantial naked short-selling in COMEX futures, equivalent to one-third of annual global production, sets the stage for a potentially “violent squeeze” if the rally persists.

Silver remains deeply undervalued, with the gold-to-silver ratio at 87.3, far above its historical average of 65. A return to this mean implies a theoretical silver price of $63/oz. With the U.S. dollar weakening, the long-term bullish thesis for silver remains firmly intact.