Foreign media reports that the latest annual report from the London Silver Association shows that the global silver supply deficit in 2025 is projected to narrow by 21% to 117.6 million ounces, jointly impacted by a 1% decrease in demand and a 2% increase in total supply.

Silver, a precious metal widely used in jewelry, electronic components, electric vehicles, photovoltaic panel manufacturing, and investment, is about to face its fifth consecutive year of structural supply shortage.

The report, compiled by consultancy Metals Focus, indicates that total industrial silver demand in 2025 may remain stable after reaching a historical peak of 680.5 million ounces in 2024, while demand for jewelry and silverware is showing a downward trend.

Demand for silver coins and bars is expected to rebound by 7% this year after plummeting 22% to a five-year low of 190.9 million ounces in 2024.

Spot silver prices have risen another 12% year-to-date in 2025, following a cumulative increase of 21.5% in 2024.

Stronger gold prices are providing support, and the uncertainty triggered by Trump's tariff policies has enhanced gold's appeal as a safe-haven asset.

The report specifically warns: "The impact of US tariff policy will be a core risk to silver demand this year."

Given silver's dual nature as both a precious and industrial metal, its investment demand in 2025 is encountering a mix of bullish and bearish factors: concerns about economic recession and geopolitical tensions are boosting portfolio diversification, but a weaker global economic outlook is suppressing industrial demand expectations.

The report adds that if tariff policies remain high for an extended period or escalating global trade frictions disrupt supply chains and drag down economic growth, demand for silver in industrial applications and jewelry/silverware will face even greater pressure.