The commodity strategist at TD Securities stated that silver is the most exciting commodity in the entire commodity market this year, and the performance of this grey metal will once again surpass gold in 2025.

Analysts from TD Securities stated in their "2025 Commodity Outlook" that the strengthening of the US and major Asian economies in the second half of 2025 will stimulate demand, tighten the silver market with insufficient supply, and digest excess inventory in the coming year.

They wrote, "White metal may be squeezed as the recovery in Asian demand absorbs the recent increase in inventory after the economic slowdown of major Asian countries, as well as the increase in processing capacity of base metal concentrates." "We expect that in the last few months of next year, the average price of silver will reach $36 per ounce, and as the gold silver price ratio challenges the annual low, silver will become an excellent commodity. How the new Trump administration handles the commitments of the Inflation Reduction Act, climate issues, and tariffs imposed on silver containing products will be the key to how silver is manifested

Analysts added that the 'silver squeeze' that you can buy is the most exciting trade in the entire commodity market in 2024, but they still believe that the growth potential of this precious metal is enormous in the coming year.

They said, "There is no doubt that the rise of silver in the past year has been largely linked to gold, but we have noticed explosive convexity in this trend, which indicates that it is reasonable that free floating inventory is about to be eroded and eventually depleted

Daoming believes that with the arrival of the typical interest rate cut cycle of the Federal Reserve, the increase in ETF buying activity "may greatly shorten the time span" for the depletion of existing silver inventory.

They said, "This is far from a typical cycle, and the additional upward trend is related to potential threats to the independence of the Federal Reserve, which may further enhance the investment attractiveness of precious metals. ETF buying activity is a key catalyst for the possible reduction of LBMA inventories, as they erode the availability of metals purchased 'for free' in the world's largest treasury system

They warned, "If ETF purchases follow the average path during a typical Federal Reserve easing cycle, the entire 'free circulation' of LBMA will be almost eroded. In fact, there is currently not enough metal available for purchase to meet ETF buying demand, similar to the path observed during special pandemic interest rate cut cycles

Along with the rising investment demand, the rapidly growing demand for solar energy also provides fundamental support as it continues to exceed expectations.

Dao Ming said, "The traditional weak industrial demand has caused a reversal of free flowing consumption, but the resilient US economy may prevent further weakness in these industries." "At the same time, given that global solar installations are still in a healthy stage of technology adoption, which guarantees significant growth in future production capacity, concerns that Asian powers are approaching the end of their S-shaped curve in solar technology adoption are unfounded

They pointed out, "Although the Trump administration may not be conducive to the growth of domestic solar energy production capacity, other regions of the world are still on a track to significantly increase their production capacity

Analysts said, "The most important thing is that prices have been at a high level for some time, but we haven't seen any signs of 'monsters' rising. Customs data shows that exports that may be related to private vault holdings have not increased globally, indicating that we haven't reached a strike price that can incentivize private vault holdings to flood the market

Daoming believes that even if silver remains at a high level for many years, the market price has not yet reached a sufficiently high level, "causing any pressure release that we have identified to flood into the market

They concluded, "This setup requires a price increase to release the inventory of unconventional resources. This is the most convex trading in the market, and the fund's position in the silver market seems much cleaner than in the gold market. Conversely, we expect silver's performance to be significantly stronger than the overall market

According to detailed forecasts from TD Securities, spot silver prices will reach $33.25 per ounce in the first quarter of 2025, $33 in the second quarter, $34 in the third quarter, and peak at $36 per ounce in the fourth quarter. They are even more optimistic about the outlook for the next year, predicting that silver prices will be between $38 and $39 per ounce by 2026.