The Dow dropped 667 points (1.48%) as markets reacted. On July 8, Trump escalated further by threatening 200% tariffs on pharmaceutical imports and adding a 50% copper tariff.
By week’s end, new 30% tariffs on EU and Mexican goods were announced, stoking inflation fears and adding to safe-haven flows.
Industrial Demand, Supply Deficit Underpin Rally
Silver entered its fifth straight year of supply deficit in 2025, with the shortfall projected at 117.6 million ounces. Solar panel demand alone is expected to consume 225 million ounces, or 14% of total usage.
Broader industrial demand—driven by AI applications, EV production, and grid upgrades—is forecast to exceed 700 million ounces for the first time. These trends reinforced the rally’s structural foundation.
Breakout Confirmed, Positioning Remains Bullish
Silver broke out of a converging triangle at $36.80 on July 10, supported by strong volume. It established short-term support at $37.31 and deeper support at $35.25 (38.2% Fibonacci retracement).
The gold-silver ratio compressed to 90:1 from above 105, still well above the 25-year average of 66. SLV drew $451 million in inflows over eight straight weeks.
