Bank of America expects silver prices to average around $35 per ounce in 2025

Bank of America (BofA) remains bullish on silver. The experts forecast prices of the metal to average around $35 per ounce this year. 

Meanwhile, the gold-to-silver ratio is now near a two-year high above 92, with its historical average being about 60 points. Despite a possible rise in silver prices, the ratio of the two metals will remain at a high level, BofA believes.

Recently, purchases by central banks have become the main driver for gold price increase. The yellow metal’s rally is expected to continue amid national banks’ attempts to diversify their assets. However, silver is less suitable for these purposes, as it is more difficult to store. Central banks have recently been net-sellers of the metal, and demand for silver is mainly due to industrial applications, BofA emphasizes.

The analysts believe that silver will continue to lag behind gold this year. However, industrial demand for the former is outpacing supply growth, supporting silver prices.