Silver Mar '25 (SIH25)

Description

Silver is a white, lustrous metallic element that conducts heat and electricity better than any other metal. In ancient times, many silver deposits were near the earth's surface. Before 2,500 BC, silver mines were worked in Asia Minor. Around 700 BC, ancient Greeks stamped a turtle on their first silver coins. Silver played a key role in the US monetary system in 1792, when Congress established silver and gold as the basis of the dollar. In 1965, however, silver was eliminated from most coins, and the US stopped redeeming dollars for silver. Today, Mexico is the only country that uses silver in its circulating coinage.

Silver is the most malleable and ductile of all metals, apart from gold. Silver melts at about 962 degrees Celsius and boils at about 2,212 degrees Celsius. Silver is not very chemically active, but it tarnishes when sulfur or sulfides come into contact with it, forming silver sulfide on its surface. Because silver is too soft in its pure form, a hardening agent, usually copper, is mixed into the silver. Copper is usually used as the hardening agent because it does not discolor silver. The term "sterling silver" refers to silver that contains at least 925 parts of silver per thousand (92.5%) to 75 parts of copper (7.5%).

Silver is usually found combined with other elements in minerals and ores. In the US, silver is mined alongside lead, copper, and zinc. In the US, Nevada, Idaho, Alaska, and Arizona are the leading silver-producing states. For industrial purposes, silver is used for photography, electrical appliances, glass, and as an antibacterial agent in the health industry.

Silver futures and options are traded at the CME Group and the London Metal Exchange (LME). Silver futures are traded on the Tokyo Commodity Exchange (TOCOM). The CME silver futures contract calls for the delivery of 5,000 troy ounces of silver (0.999 fineness) and is priced in terms of dollars and cents per troy ounce.

Prices - CME silver futures prices (Barchart.com symbol SI) traded sideways into Q2 of 2025, posting their 2025 low of $28.310 per troy ounce in April. Global trade turmoil weighed on silver prices in early 2025, amid concerns that President Trump's tariff regime would derail global economic growth and demand for industrial metals. Silver prices began ascending the remainder of 2025 as uncertainty over US tariffs and geopolitical risks in Ukraine, the Middle East, and Venezuela boosted safe-haven demand for precious metals. The slump in the dollar index to a 3-year low in September also boosted silver prices, as did the easing of US-China trade tensions. Strength in the US economy was bullish for silver demand and prices after the US Q3 GDP expanded +4.4% (q/q annualized), the strongest pace in two years. Fund demand for silver supported prices as long holdings in silver ETFs rose to a 3-1/2 year high in December. Silver prices climbed to a record high of $81.845 per troy ounce in December and finished 2025 up sharply +142% yr/yr at $70.13 per troy ounce.

Supply - World mine production of silver in 2025 rose by +2.8% yr/yr at 26,000 metric tons, below the 2016 record high of 28,600. The world's largest mine producers in 2025 were Mexico with 24.2% of world production, Peru with 13.8%, China with 13.1%, Bolivia with 5.8%, Chile with 5.4%, Poland with 5.0%, Russia with 4.6%, the US with 4.2%, Australia with 3.8%, Kazakhstan with 2.4%, and both Canada and Sweden with 1.5%. US production of refined silver in 2025 rose by +42.7% yr/yr to 6,833 metric tons.

Trade - US imports of silver bullion in 2025 rose by +53.3% yr/yr to 5,719 metric tons. The bulk of US silver imports in 2023 came from Mexico and Canada.

Information on commodities is courtesy of the cmdty Yearbook, the single most comprehensive source of commodity and futures market information available. Its sources - reports from governments, private industries, and trade and industrial associations - are authoritative, and its historical scope for commodities information is second to none. The CRB Yearbook is part of the Barchart product line. Please visit us for all of your commodity data needs.