Silver Miners: Top 10 Producers

Silver has closed above $38 and has been above $35 since June 5th, marking a breakout that occurred on May 15th when it crossed $29. Since then, it has surged to $32 in two days and has maintained its position above $35.

Silver has closed above $38 and has been above $35 since June 5th, marking a significant breakout that occurred on May 15th when it crossed $29. Since then, it has surged to $32 in two days and has maintained its position above $35. This remarkable performance is driven by a combination of fundamental and technical factors.

Silver's price surge can be attributed to several key factors. Firstly, the metal has been experiencing a fifth consecutive year of supply deficits, with industrial demand reaching 680.5 million ounces in 2024 and projections exceeding 700 million ounces for 2025. This growth is primarily driven by a 139% increase in solar panel consumption since 2016, which has significantly boosted silver's demand [1].

Additionally, the market is facing exceptional Asian demand, as indicated by Shanghai physical premiums exceeding $51 per ounce above London prices. This high demand, coupled with supply constraints, has created a tight market for silver [1].

Technically, silver's breakout above $38 represents a 25% year-to-date gain and the highest prices since the 2011 commodity supercycle. Despite extreme oversold technical readings with RSI plunging to 24.839, the metal has maintained its momentum, suggesting powerful fundamental forces overriding short-term technicals [1].

The gold-silver ratio has compressed to 90:1 from 105:1 earlier in 2025, reflecting silver's outperformance. Analysts at UBS project further narrowing with silver targets of $36-$38, representing conservative estimates given supply constraints [1].

The silver market's technical structure reveals a fascinating dichotomy. While price is at 14-year highs, RSI is deeply oversold, suggesting severe oversold conditions. However, the price maintains above all moving averages, indicating powerful accumulation [1].

Central bank demand and investment inflows also support silver's price action. Central banks have accelerated gold accumulation amid uncertainty, with Poland leading purchasers at 49 tonnes in Q1 2025. Additionally, silver ETFs captured $1.49 billion in annual inflows, with SLV posting 30.69% returns year-to-date [1].

For day traders, silver's momentum despite extreme oversold conditions suggests dip-buying opportunities near $37.50-$38.00 with tight stops below $35.25, targeting psychological $40 resistance. Swing traders should monitor silver's cup-and-handle formation for sustained weekly closes above $38, projecting $42-$45 targets [1].

In conclusion, silver's breakout and surge are driven by a combination of fundamental supply-demand dynamics, exceptional Asian demand, and powerful technical forces. The metal's continued outperformance relative to gold and the compression of the gold-silver ratio suggest further upside potential. However, investors should remain cautious of extreme speculative positioning and monitor key technical levels.

References:
[1] https://www.gainesvillecoins.com/blog/silver-14-year-high-gold-3340-platinum-surge-july-18-2025