Looking to the Futures

This comes after a strong year in 2025, when silver surged up over 140%, making it one of the strongest years in history for the precious metal. Silvers bull-run seems to be fueled from multiple angles. The bullion is often used as a hedge against inflation or investment purposes but has also seen increasing demand from the industrial side. 

Silver supply faces the fifth consecutive year of deficits in 2025 as industrial demand grows for technologies like solar panels, electric vehicles, and AI data centers. Total silver demand is projected to reach 48,000 to 52,000 tonnes per year in 2030, whereas current trends suggest supply would reach 34,000 t/y, creating a gap of 14,000 to 18,000 tonnes annually. 

Solar panels have the highest industrial demand for silver due to use in photovoltaic cells, which are essentially solar cells that convert sunlight into electricity. However, electric vehicles are expected to have the highest allocation by 2030. A typical gas-powered vehicle contains around 15-28 grams of silver, whereas an electric vehicle can contain almost twice that amount, around 25-50 grams. Currently, around 94 million vehicles are produced annually around the world. 

Silver production primarily involves mining as a byproduct of copper, lead, and zinc, though some primary silver mines do exist. According to mining.com, mine supply has struggled to grow meaningfully, recycling remains constrained. Much of silver production continues to come as a by-product of base-metal mining, which makes it difficult for the bullion to respond to higher prices. 

In November, the United States Geological Survey (USGS) added silver to its 2025 critical minerals list. Minerals added to the list can have a significant impact on the "economic or national security of the US; have a supply chain that is vulnerable to disruption; and serve an essential function in the manufacturing of a product, the absence of which would have significant consequences for the economic or national security of the US," according to the USGS. 

Following this decision, China implemented strict export controls. Starting on January 1^st, China requires special government licenses for approved companies, effectively controlling 60-70% of the global refined silver exports. 

Additionally, silver finds "safe haven" support after the United States' capture of Venezuela's president Nicolas Maduro. Gold and silver are often preferred by investors during times of geopolitical uncertainty. 

As we look at the March silver futures contracts (/SIH26) on a one year one day chart, we can see the pullback on Wednesday after just matching the previous high at 82.67. Looking at the upward movement over the past year, silver is trading almost 43% above the 200-day simple moving average and 30 percent above the 50-day simple moving average. 

The Hightower report has the next area of resistance around 84.057 and 85.663, while the 1^st support hits today at 78.273 and below there at 74.094. The market's close above the 9-day moving average suggests the short-term trend remains positive. 

Major economic reports, trading events, and news items that could potentially impact specific futures markets:

International Trade in Goods and Services 8:30 AM ET

Jobless Claims 8:30 AM ET

Productivity and Costs 8:30 AM ET

Wholesale Inventories (Preliminary) 10:00 AM ET

EIA Natural Gas Report 10:30 AM ET

Consumer Credit 3:00 PM ET

Fed Balance Sheet 4:30 PM ET

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• Ripple (/XRP)
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• Solana (/SOL)
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