Silver Reaching Aggressive Bull Phase?

A storm is brewing in the silver market, and analysts say it could send the white metal to unprecedented heights. For the fourth consecutive year, global silver supply is running at a deficit, with no vast reserves like the central bank stockpiles that bolster gold. This tightening squeeze, coupled with surging industrial demand and a looming geopolitical wildcard, has market observers buzzing about a potential price explosion.

This analysis, which I drew roughly 2 years ago, has continued to follow the same pattern. This highlights an unusually large one-day surge in the silver market driven by an economic downturn, followed by a massive several-year bull run:

Mexico, the world’s silver powerhouse, produces roughly 75% of the global supply, but its output is now under threat. Recent murmurs of U.S. tariffs on Mexican goods, part of broader trade tensions, could disrupt this critical lifeline. If implemented, these tariffs might choke export supply chains, shrink available supply, and send shockwaves through an already strained market. Another important factor is that it is a metal that’s both a safe haven and an industrial requirement, and the supply isn’t keeping up.

The industrial side of the equation is equally compelling. Silver’s role in green technologies, particularly solar panels, has driven demand to new peaks. As nations race to meet renewable energy goals, silver’s unmatched conductivity makes it indispensable, with consumption climbing year over year. This week, silver prices reflected the tension. After dipping to $31.41 an ounce on February 26 (the lowest since mid-month) the metal clawed back some ground, igniting speculation of a breakout. With Mexico in the tariff crosshairs and no relief on the supply front, the silver supply could be in trouble.

Market chatter points to another layer of intrigue: The topic that paper markets (futures and derivatives) have long suppressed silver’s true value. With physical demand outpacing available stockpiles, some investors believe the dam is about to break.

For now, silver remains a sleeper hit in the precious metals saga, overshadowed by gold’s record-setting 2025 run. But as supply dwindles and demand roars, the stage is set for a dramatic turn. Whether it’s tariffs, solar panels, or a long-overdue reckoning with physical reality, silver’s moment may finally be at hand.