Silver Shortage Supports Rally, Technicals Point To Further Gains - abrdn Physical Precious Metals Basket Shares ETF (ARCA:GLTR), StreetTRACKS Gold Shares (ARCA:GLD)

Core Insights - Silver is significantly outperforming gold, indicating a potential second phase of the commodity bull market, with spot silver prices surging over 85% in 2025, rising from under $30 to over $54 per ounce [1] Supply and Demand Dynamics - The rally in silver prices is driven by tight inventories, persistent investor flows, and a structural supply deficit, with projections of silver reaching $60 next year [3] - Industrial demand for silver rose to 689 million ounces in 2024, with photovoltaic (PV) applications accounting for 244 million ounces, reflecting a more than 150% increase from 2020 [5] - The Silver Institute anticipates a fifth consecutive annual supply deficit of approximately 95 million ounces, despite weak demand for jewelry and silverware, which supports elevated prices [6] Production Challenges - Over 70% of mined silver is a byproduct of other metal production, limiting the ability of producers to respond quickly to price increases [7] - Several mines are scheduled to close by 2030, which may further tighten silver output [8] Technical Analysis - Silver's price patterns indicate a potential continuation of upward momentum, with a cup-and-handle pattern suggesting that silver may have further gains in 2025 [11]