Current Market Overview
The price of silver (XAGUSD) is currently testing the significant $80 level, which is crucial for its near-term outlook. A failure to maintain this level could lead to a drop towards the critical support at $70.
Recent Price Movements
Silver has experienced a notable rally towards the end of 2025, primarily driven by the Federal Reserve's decision to cut interest rates and a significant decline in silver inventories. Reports indicate that stockpiles in London have decreased by 33% since mid-2021, with current estimates showing only about 200 million ounces of "free float" silver available, down from 850 million ounces in 2019.
Supply and Demand Dynamics
According to the Silver Institute’s World Silver Survey 2025, the annual demand for silver is projected at 1.16 billion ounces, resulting in a cumulative deficit of nearly 800 million ounces since 2020. Although recycling and production reached a 12-year high of 193.9 million ounces in 2024, this increase is insufficient to cover the existing supply shortfall.
Future Price Projections
Currently, silver is facing resistance at its recent highs. However, if the support at $80 holds strong, there is potential for a retail-driven surge towards the $100 mark.