Silver Bull Run:

Silver prices are “running” or rallying on the back of a mix of robust industrial demand from the green energy and technology segments, including electric vehicles (EVs) and solar panels, and its function as a store of value against economic and geopolitical uncertainty. Supply-side pressures and weakening U.S. dollar are also augmenting the price rally, leading to a chronic supply-demand imbalance and making silver an appealing substitute for gold.
Industrial Demand:
Green Energy & Tech Boom:
Solar power, electric vehicles, electronics, and other clean technologies depend significantly on silver. Growth in these industries directly boosts industrial demand for silver, which is essential in the manufacture of these components.
“New Critical Mineral:
Some experts, such as Vedanta’s head, label silver a “new critical mineral of the future” because of its central position in so many current technologies, and it is a bet for growth as well as an expensive metal.
Safe-Haven Demand:
Geopolitical & Economic Uncertainty:
Silver is becoming a secure and cheap substitute for gold in times of geopolitical tensions and stock market turmoil.
Macroeconomic Headwinds:
A depreciating U.S. dollar, increasing worldwide indebtedness, and fears for financial instability increase the attraction of silver as a counter to such risks.
Supply-Side Reasons:
Supply-Demand Imbalance:
There’s a strong and long-standing supply-demand imbalance, where demand outpaces supply for the fourth year in a row.
Constricted Mining & Recycling:
This deficit is fueled by constricted mining and recycling abilities, which are not able to keep up with rising demand.
By-Product Supply:
Much of the world silver supply is received as by-product from other metal mining such as copper and lead, adding to supply constraints.
Monetary & Currency Factors:
Deteriorating U.S. Dollar:
Deterioration in U.S. dollar increases the cost of silver in terms of dollars for other currency holders, increasing its price in dollars.
Positive Interest Rate Environment:
Silver performs well during low interest rate scenarios because of its lower opportunity cost.