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The loudest impulse in the silver market was not the recent price rally or the subsequent optimistic forecasts of investment banks. The biggest breakthrough was the United States Geological Survey's (USGS) decision to list silver as a critical commodity.
It's a document of great importance in the US administration - it doesn't go to materials that can be easily replaced, or those that don't play an important role in economic security. The signal is unmistakable: Washington is beginning to treat silver not as "cheaper gold," but as a piece of technological infrastructure. And this automatically changes the way the global market operates.
In practice, this means that industrial demand - in electronics, photovoltaics, energy and high-tech - is becoming a strategic priority for the U.S., and therefore also for investors and manufacturers. It's a foundation that can reshape the entire metal supply chain.
However, there is no denying that silver was already in an impressive uptrend before the USGS decision. The metal nearly doubled its value from its 52-week low of 27,545, driven by rising industrial demand, limited supply from mines and macroeconomic uncertainty.
UBS recently raised its 2025 forecast to $53, and even allows for the possibility of a $60 test in early 2026. - This is an ambitious assumption at current levels of around $48.965.
The status granted by the USGS is not a media curiosity - it is a signal to regulators, industry, the military, technology companies and the entire energy sector. It elevates the importance of silver to the category of "strategic resource."
Silver works on two fronts: it protects capital during periods of uncertainty, while being indispensable in modern economic sectors. This combination reinforces its cyclical nature, but also gives it exceptional resilience to downturns.
Ongoing supply deficits over the past few years have kept prices high - even when gold temporarily loses its luster.
Last week's -3.43% drop is a reminder that silver can jerk the market hard. Today's -2.66% move after the new ATH only confirms this.
UBS notes that the current rate of increase may not be sustainable - gold benefits from central bank demand and strategic reserve status, something silver does not formally have (yet?).
As with the S&P 500 index, markets sometimes need to catch their breath after strong rallies. Silver is no exception.
The USGS decision marks a turning point: silver officially enters the ranks of commodities of strategic importance to the US economy. This is not a cosmetic change - it is a redefinition of the metal's role in the global technological, industrial and investment system.
The combination of its critical status, strong industrial demand and safe-haven nature means that silver can be an exceptionally strong portfolio diversifier. However - as always - sharp price movements must be expected.
If you're looking for an asset that combines technological potential with the dynamics of the financial markets, silver in its new role could be one of the most interesting topics of the next few years. But it's still not a "buy and forget" instrument.
The content is for informational purposes and does not constitute investment advice.
