Silver Prices Set to Soar Amid Shortages and Legal Tender Use Cases Growing

Mar 25, 2025

Structural Deficit in Silver

The silver market is facing a significant structural deficit, marking its fifth consecutive year of supply shortages. In 2025, the demand for silver is projected to reach 1.20 billion ounces, while supply is expected to grow only by 3%, resulting in a substantial deficit of 149 million ounces. This gap between supply and demand is expected to be filled by existing above-ground stocks, which could drive prices higher. The ongoing deficit is largely due to strong industrial demand and challenges in increasing mine production, exacerbated by reserve depletion and lower ore grades.

Silver as Legal Tender

In several U.S. states, including Utah, Louisiana, and Texas, gold and silver have been recognized as legal tender. This allows citizens to use these precious metals for transactions, aligning with the U.S. Constitution's provision that no state shall make anything but gold and silver coin a tender in payment of debts. Utah, in particular, has been at the forefront of this movement, having passed the Utah Legal Tender Act which recognizes U.S.-minted gold and silver coins as legal tender.

Recently, Utah has taken further steps by passing legislation that allows state vendors to be paid in gold and silver, pioneering a more flexible financial infrastructure through a bullion-backed electronic payment system. This move positions Utah as a leader in promoting "sound money" principles and provides businesses with more options for financial transactions during uncertain economic times