Silver Rises Over 120% YTD 
Silver price prediction 5 years ago would have shown modest expectations, but the reality has exceeded most forecasts. If you had invested in silver five years ago, you’d likely be pleasantly surprised by your returns today. This impressive performance demonstrates silver’s potential as both an industrial commodity and a store of value for patient investors.
Understanding how your silver investment would have performed through silver price prediction analysis provides valuable insights for future investment decisions and helps illustrate why silver continues to attract both conservative and aggressive investors seeking portfolio diversification.
On May 22, 2020, silver traded at $17.21 per ounce. As of May 23, 2025, it’s at $33.54 — a 94.9% increase.
Over the same five-year stretch, the S&P 500 (via the SPY ETF) also nearly doubled, gaining around 94%. But here’s what makes silver stand out: it achieved stock-market-like returns — without being part of the stock market.
Silver is often dismissed as a “boring” or defensive investment — something you buy to preserve wealth, not grow it. But the past five years tell a different story. Silver not only provided a safe haven during global uncertainty, it also delivered compelling returns that rivaled equities.
For investors seeking diversification, tangible assets, and long-term inflation protection, silver quietly delivered.
Silver’s Strength: Past Volatility, Strong Recovery
In 2020, amid pandemic-driven chaos, it spiked nearly 48%. Price swings continued, but long-term holders were rewarded. Those who bought during lows — especially March 2020 when silver dipped below $12 — saw extraordinary returns.
Why Silver Rose: Key Drivers
- Industrial Demand: Silver isn’t just a precious metal — it’s a critical industrial component. Over half of global silver demand now comes from industrial applications. In particular:
- Solar panels: Each panel uses 15–20 grams of silver. Global solar installations surpassed 250 GW in 2024 alone, with projections exceeding 300 GW in 2025 — driving exponential demand.
- Electronics: Silver’s superior conductivity makes it indispensable in everything from smartphones to servers to semiconductors.
- Electric vehicles: EVs use up to twice as much silver as traditional combustion vehicles — about 25–50 grams per car. With global EV sales projected to exceed 17 million units in 2025, this sector alone represents a significant tailwind.
- Monetary Policy & Inflation Concerns: Between 2020 and 2022, the U.S. Federal Reserve printed over $4 trillion in new money. With real interest rates remaining near or below zero through much of the five-year span, investors turned to hard assets. Silver, historically considered “poor man’s gold,” provided a more accessible inflation hedge with added growth potential.
Additionally, the U.S. dollar’s purchasing power eroded approximately 15% since 2020 when adjusted for cumulative inflation. This currency debasement further strengthened the case for precious metals.
- Supply Constraints: Silver supply has struggled to keep pace. Global mine production in 2020 dropped by over 5% due to COVID shutdowns. Recovery since then has been gradual. Unlike gold, the majority of silver is mined as a byproduct of base metals like copper and lead, making its supply less responsive to rising prices.
In 2024, global silver demand outpaced supply by more than 100 million ounces for the second consecutive year, according to the Silver Institute. These deficits added sustained upward pressure on prices.
Silver vs. Stocks: The Diversification Case
Silver doesn’t behave like stocks. It offers true portfolio diversification. In downturns, it often zigged while equities zagged. It’s not about betting everything on silver — it’s about balancing your financial plan.
Silver also demonstrated lower correlation with stock market movements compared to many traditional investments, providing genuine diversification benefits. During market downturns, silver often moved independently or even inversely to stock prices, helping stabilize overall portfolio performance.
Building Your Silver Price Prediction Strategy
You didn’t need to time the market or make a big, bold move to benefit from silver’s rise.
Even modest, consistent contributions — like $100 per month — through dollar-cost averaging could’ve built a significant position. Popular options like silver coins and rounds typically carry premiums of 10–20% over spot price, which affects your total cost basis and ultimate returns.
But long-term holders who stayed the course still saw outstanding gains. They weren’t chasing headlines — they were accumulating a hard asset with real-world utility and staying power.
If you’re just getting started, the lesson is simple: you don’t need to go all in — just get in. Small, consistent steps taken over time can yield powerful results.
Silver Price Prediction: What’s Next for Investors?
The fundamentals remain strong:
1. Industrial Demand is Still Climbing:
- Solar expansion: Global solar capacity is projected to grow by over 300 GW in 2025, up from 252 GW in 2024, according to BloombergNEF. Silver remains a non-substitutable material in photovoltaic (PV) cells.
- EV boom: Electric vehicle sales hit 14 million in 2023 and are expected to reach 17 million in 2025. Each EV contains up to 50 grams of silver — equating to more than 27 million ounces of annual demand from EVs alone.
- Tech innovation: With increasing applications in 5G infrastructure, AI processors, and advanced medical devices, silver’s role in high-tech manufacturing continues to expand.
2. The Gold-Silver Ratio:
The gold-silver ratio — how many ounces of silver it takes to buy one ounce of gold — has long served as a gauge of silver’s relative value. When the ratio is high, silver is historically undervalued.
In 2020, the ratio spiked to nearly 120:1, signaling a rare buying opportunity. Investors who acted then have since benefited from silver’s strong rebound, as the ratio has gradually returned toward its historical average near 65–70:1.
Today’s ratio suggests silver remains attractively priced — especially given its rising industrial demand and tightening supply.
3. Structural Supply Challenges Persist:
- Most silver is mined as a byproduct of other metals — over 70% — making production levels less responsive to rising demand.
- New mine development is lagging: greenfield silver mine approvals are at decade lows. The Silver Institute reports that 2024 saw a third consecutive year of supply deficits, exceeding 100 million ounces.
4. Economic and Geopolitical Uncertainty are Rising:
- Inflation remains sticky in many regions, even as central banks pause rate hikes. Silver, like gold, offers a proven store of value during currency volatility.
- Rising geopolitical tensions—from Eastern Europe to the Middle East and Asia-Pacific—are renewing investor interest in physical assets as financial insurance.
All of these factors point to silver retaining — and possibly increasing — its relevance.
The Bottom Line
Had you started investing in silver five years ago based on silver price prediction models, you’d have nearly doubled your initial investment. It’s a clear reminder that even modest investments, started early, can yield significant returns.
Silver’s past is impressive — but its future may be even more compelling.
Start small. Stay consistent. Think long term. Your first step is the most important one — take it.
Want to explore how precious metals fit into your portfolio? Whether you’re looking to invest in gold, add silver to your IRA, or build a balanced strategy, GoldSilver is here to help you make confident, informed decisions.
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Disclaimer: This article is for informational purposes only and should not be considered financial advice. Historical performance is not indicative of future results. Always conduct thorough research or consult with a financial advisor before making investment decisions.
