Michael DiRienzo, President and CEO of the Silver Association, stated that although Trump's election has dealt a short-term blow to silver and the threat of tariffs is currently looming over industrial demand, there is still some strong momentum for silver prices to rise in the coming year.

During an interview, DiRienzo was asked about the potential impact of Trump on silver prices. He said that the Silver Association has identified several potential factors related to the new government, but there are also some unknown factors.

dollar

He said, "No one can say for sure how this will affect the commodity market. When he was elected in 2016, it had an impact to some extent. The US dollar is important because it is the currency used by many countries in the world. If the US dollar continues to rise like it has since Trump's election, it may affect the prices of precious metals, including silver

tariff

Tariffs are another factor that may have a significant impact on precious metals, especially silver.

Industrial demand

DiRienzo said, "When you hear the word tariffs, it's not good news. Look at the high tariffs he wants to set for major Asian countries, will this affect their industrial demand? This is an important component of silver prices today, as it is both an investment metal and an industrial metal. We can only wait and see the impact on silver

The latest data from the Silver Association predicts that the leading global share of silver demand in this Asian country will continue to rise by 2025.

He said, "In terms of industrial demand, the country will once again become a leader this year. If you only look at their electrical and electronic components, it is expected to reach a new high of about 210 million ounces, about 6600 tons. From this perspective, just two years ago, their demand was about 3900 tons, just that category. But we do believe that globally, some components will rise this year

Investment demand

DiRienzo also talked about the investment demand for silver and stated that India is helping to support global numbers.

He said, "In terms of global investment demand, India is indeed keeping us in the game now. We expect physical investment to decrease by about 15% this year, we are talking about silver coins and bars, but in terms of exchange traded products, we see the first annual inflow of funds into these products in three years, and at the same time, the market expects the Federal Reserve to further cut interest rates. The US dollar has experienced some weak periods, and the decline in yields benefited silver investment at the end of October

This year, we expect global ETP holdings to increase by around 8% compared to the end of 2023, and India is indeed leading in this market. We have SLVs, we have PSLVs, but let's face it, India's ETP market is relatively new and seems to have strong demand

The Federal Reserve

When talking about the path of the Federal Reserve's interest rate cuts, DiRienzo admitted that although its trajectory is more uncertain than in September, he still expects silver prices to be boosted by further interest rate cuts.

He said, "Analysts still expect at least two to three interest rate cuts in 2025, which would be a good thing for the global precious metal market if not more. Traditionally, when interest rates fall, people want to get rid of certain investments and turn to hard assets, and silver is one of them. We look forward to a very good 2025. 2024 is a good year for silver, with an annual increase of 27% to 28%, and silver prices are also quite resilient

Outlook for Silver Prices in 2025

When asked about his views on silver prices in 2025, DiRienzo said that the Silver Association does not like to provide price forecasts, but he is encouraged by some of the numbers given by analysts.

He said, "If silver prices reach $36, $37, $38 per ounce next year, the average price may be around $32, $33, and the market will really appreciate that. Those banks made these predictions for a reason, because silver is still a valuable resource, and with the arrival of the Green Revolution, the future of silver is very bright

Daily chart of spot silver