Silver tightens as industrial demand outpaces mine supply
The silver market has now recorded four consecutive years of physical deficit, driven by solar, EVs, and grid electrification.
The silver market entered its fourth consecutive year of structural deficit, as industrial demand — particularly from photovoltaics and grid electrification — continues to outpace mine supply.
The industrial engine
Solar alone now absorbs more silver annually than the entire jewellery sector. New cell architectures have reduced per-panel loadings, but total installation growth has more than offset that efficiency.
Supply is inelastic
Roughly 70% of silver is produced as a by-product of lead, zinc, and copper mining. That means silver supply cannot respond quickly to price signals — a structural feature that supports the deficit thesis.
Implication for the ratio
The gold-to-silver ratio remains historically elevated. A sustained industrial pull, combined with any monetary bid from a gold breakout, is the classic setup for silver to close the gap.
Precious metals correspondent covering gold, silver, and platinum group markets.
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