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Productivity | Strategy | Profitability

2025 and the Shifting Global Economic Landscape.
As the new presidency begins in 2025, there is a renewed sense of optimism after a tumultuous four years that left the global economy rattled and
financial systems under pressure. Amidst this backdrop, several seismic shifts in global finance are unfolding.
The implications of waning trust in the U.S. dollar, BRICS nations quietly accumulating precious metals, and a new era of silver dominance set the stage for what could be a transformative year. With silver poised to outperform gold, tech demand soaring, and mining companies on the verge of explosive growth, 2025 may well be the year the global economic landscape pivots.
Over the last decade, cracks in the global financial system have become increasingly evident, with the U.S. dollar (USD) facing mounting skepticism. This distrust has been accelerated by excessive money printing during the COVID-19 pandemic and subsequent periods of quantitative easing. While the USD remains the world’s reserve currency, its dominance is no longer assured.
BRICS nations—Brazil, Russia, India, China, and South Africa—have made it clear that they are looking to reduce their reliance on the greenback. The announcement of a potential BRICS-backed currency in 2024 was a shot across the bow for the USD. This shift has major implications for global trade and reserves, and it raises a critical question: if the world begins to de-dollarize, what comes next?
Gold and silver emerge as logical alternatives. Precious metals have historically been a hedge against currency devaluation, and with geopolitical
uncertainty at an all-time high, their appeal is surging. Of course, the cryptocurrency market is another alternative to the dollar and it can play a role as the new monetary landscape changes.
In recent years, BRICS nations have quietly ramped up their gold and silver reserves. Central banks around the globe purchased a record 1,136 tons of gold in 2022, with China and Russia leading the charge. What’s particularly striking is the emphasis on silver—a metal often overlooked compared to gold but with tremendous industrial and monetary potential.
A PRECIOUS UNDERVALUED METAL
Silver is not just a hedge; it’s a critical component in the green energy revolution. BRICS nations understand this dual value and are leveraging it
strategically. By amassing silver reserves, they are not only preparing for potential shifts in the global monetary system but also positioning themselves
for dominance in industries like solar energy and electric vehicles. It is unlikely that the BRICS are buying silver for monetary purposes, but this does not matter because demand is demand, regardless of use.
The silver market in 2025 is strong outperforming gold year to date. At the time of writing, silver is trading at $33 per ounce, but market analysts are almost unanimously predicting a breakout to $50 and beyond. Why? First, supply and demand dynamics have created a perfect storm. Global silver demand is outpacing supply, driven by a combination of industrial use and investor interest. Renewable energy projects, particularly solar panels, account for a significant portion of silver demand, with projections estimating a 20% increase in 2025 alone.
Second, the ongoing monetary instability and devaluation of fiat currencies have made silver an attractive safe haven. Unlike gold, silver offers a more accessible entry point for retail investors, further fuelling its rise. Third, speculative activity around silver is intensifying. Hedge funds and institutional
investors are taking long positions, betting on continued price increases as global economic uncertainty persists.
One of the most overlooked yet critical aspects of silver’s rise is the potential for mining companies to benefit exponentially. Junior mining companies,
in particular, are positioned for explosive growth. Consider this: while silver prices have risen steadily over the past two years, mining stock valuations have lagged. This discrepancy is unsustainable. As silver approaches $50 per ounce, mining companies with substantial reserves will see their profit margins skyrocket. Additionally, the ongoing trend of mergers and acquisitions in the mining sector adds another layer of opportunity. Larger mining corporations are actively acquiring junior miners to secure access to untapped reserves, creating a win-win scenario for investors in the
sector.
AN INDISPENSABLE ELEMENT
The Federal Reserve is caught between a rock and a hard place in 2025. Having raised interest rates aggressively in 2023 to combat inflation, the Fed now faces pressure to lower rates amidst a slowing economy. Lower interest rates, however, come with their own set of risks, particularly currency
devaluation.
This predicament has far-reaching implications for precious metals. Lower interest rates make non-yielding assets like silver and gold more attractive,
as the opportunity cost of holding them decreases. Moreover, a weaker U.S. dollar further supports higher silver prices.
The political landscape in the United States adds another layer of complexity to the economic picture. With Donald Trump returning to the White House in 2025, markets are bracing for a potentially dramatic shift in fiscal and trade policies.
Trump’s “America First” agenda is likely to focus on domestic manufacturing and energy independence, both of which could have significant implications for silver. Increased investment in infrastructure and renewable energy could further drive demand for silver, while potential trade tensions could create additional tailwinds for precious metals as safe-haven assets.
Silver’s industrial applications are nothing new, but the scale of demand from the tech sector is unprecedented. The rollout of 5G technology, coupled with advancements in electric vehicles, has created a surge in silver consumption.
In the retail space, silver jewellery remains highly sought after, particularly in markets like India and China. On the tech side, silver’s unmatched conductivity makes it indispensable in electronics, from smartphones to semiconductors.
This dual demand from industrial and retail sectors is a key reason why silver is expected to outperform gold in 2025. While gold serves primarily as a monetary asset, silver’s industrial utility gives it a unique edge in a world increasingly driven by technology. Gold has long been considered the king of precious metals, but 2025 might just be the year silver takes the crown. Here’s why:
1. Affordability: Silver is far more accessible than gold, making it an attractive option for retail investors.
2. Higher Upside Potential: Silver is historically more volatile than gold, which means its price movements—both up and down—are more dramatic. With the current bullish sentiment, silver’s potential for gains far exceeds that of gold.
3. Industrial Demand: As mentioned earlier, silver’s industrial applications give it a dual-purpose value that gold simply cannot match.
The U.S. Treasury’s reliance on issuing debt to finance government spending is another factor contributing to currency devaluation. As the debt-to-GDP ratio climbs to unsustainable levels, the likelihood of further devaluation increases. This scenario is bullish for silver. A weaker dollar makes silver more affordable for international buyers, boosting demand. Furthermore, as investors lose confidence in fiat currencies, silver’s role as a store of value becomes even more critical.
As the Federal Reserve moves toward lower interest rates, the implications for silver are profound. Historically, lower interest rates have been a catalyst for higher precious metal prices. This is because lower rates reduce the opportunity cost of holding non-yielding assets like silver.
SILVER EMERGING AS A CLEAR WINNER
Additionally, lower rates often coincide with higher inflation, creating a double benefit for silver. Not only does it act as an inflation hedge, but its price also tends to rise in environments where real interest rates are negative.
So, where does all of this leave silver by the end of 2025? Most analysts agree that $50 per ounce is not just achievable. Some are even calling for prices as high as $70 per ounce, depending on how global economic conditions evolve. The key drivers will be:
· Continued industrial demand from sectors like renewable energy and technology.
· Increased investment demand as geopolitical uncertainty and currency devaluation persist.
· Supply constraints, as silver production struggles to keep up with demand.
If you are thinking it would have been nice to have bought silver when is was $5.00 per ounce, there is a way to do so. Invest in the silver mining sector at the present time and you have essentially accomplished that goal.
In summary, 2025 is shaping up to be a pivotal year for silver. As the world grapples with economic uncertainty, shifting monetary policies, and the rise
of new global powers, silver is emerging as a clear winner. Whether you’re an investor, a consumer, or simply an observer of global markets, the message is clear: keep an eye on silver—it’s going places. EG