WHY SILVER?
Growing Silver Demand
& Decreasing Supply
Global Annual
Silver Demand
Silver Mine Production
Global Industrial
Silver Demand
Source: Metals Focus / Silver Institute (2023)
Silver : An Industrial Metal
Silver is second only to oil as the most widely used commodity and has more than 10,000 uses due to its unique characteristics, including:
- Most reflective of all the metals
- Exhibits the highest electrical conductivity, thermal conductivity, and reflectivity of any metal
- Strongly resists corrosion and oxidation
- Second most malleable and tactile next to gold
- Antibacterial and antimicrobial properties
Silver : An Industrial Metal
Silver is second only to oil as the most widely used commodity and has more than 10,000 uses due to its unique characteristics, including:
- Most reflective of all the metals
- Exhibits the highest electrical conductivity, thermal conductivity, and reflectivity of any metal
- Strongly resists corrosion and oxidation
- Second most malleable and tactile next to gold
- Antibacterial and antimicrobial properties
Industrial Silver Applications
Electronics
& Electrical
Silver is present in nearly every electronic device. Its outstanding electrical conductivity makes it the top choice for a wide range of applications, including printed circuit boards, switches, TV screens & AI technology.
Brazing
Alloys
Silver brazing alloys find application in various fields, ranging from air-conditioning and refrigeration to electric power distribution. These alloys also play a crucial role in the automotive and aerospace industries.
Solar
Technologies
Silver is crucial in the manufacturing of solar cells, which generate electricity. Its application in photovoltaics (PV) makes PV power the primary and leading source of green electricity.
Electric
Vehicles
Silver is extensively used in electric vehicles, particularly in batteries and electrical control units. Battery electric vehicles (BEVs) are estimated to consume between 25 and 50 grams of silver per vehicle.
Medical
Applications
Silver is used in various applications such as water purification, wound care, bone prostheses, reconstructive orthopedic surgery, cardiac devices, catheters & surgical appliances.
Silver
Catalysts
Silver serves as a common catalyst in numerous manufacturing processes, contributing to the production of everyday items. Its distinctive chemical properties make silver an essential catalyst in the manufacturing of two significant industrial chemicals: ethylene oxide and formaldehyde.
Battery
Technology
The most common silver-containing primary batteries are the silver–zinc cells.. As manufacturers continue to transition to silver-based batteries, so too will its demand in the market.
Water
Filtration
Every year, millions of water purifiers are sold, and a common component found in many of them is silver. Silver ions are incorporated into water purification systems used in hospitals, community water systems, pools, and spas.
The Role of Silver in the Green Revolution
With its unique conductive and chemical properties, silver is one of the worlds most important industrial metal with essential roles in many electrical and electronic applications. The surge in green technologies, driven by the mainstream adoption and exponential growth of new energy vehicles (NEVs) and the sustained investment in solar photovoltaic energy, creates an increasingly critical part of industrial demand for silver in the future.
A growing need for power-efficient, high-voltage wiring harnesses in battery electric vehicles and a gradually rising interest in wireless charging technology and infrastructure present significant potential for silver consumption.
Source: Matt Watson, founder of Precious Metals Commodity Management LLC
Silver's Growing Role in the Automotive Industry
Over 60 million ounces of silver are used annually in motor vehicles. Our motor vehicles are becoming more and more computerized, and silver plays a vital role in their operation. Automakers such as TESLA, are progressively turning to silver to facilitate the incorporation of advanced technologies in modern vehicles. This shift has created a substantial demand for silver within the automotive sector, and estimates indicate that by 2025, approximately 90 million ounces of silver will be utilized each year in the industry.
Silver's Growing Role in the Automotive Industry
Over 60 million ounces of silver are used annually in motor vehicles. Our motor vehicles are becoming more and more computerized, and silver plays a vital role in their operation. Automakers such as TESLA, are progressively turning to silver to facilitate the incorporation of advanced technologies in modern vehicles. This shift has created a substantial demand for silver within the automotive sector, and estimates indicate that by 2025, approximately 90 million ounces of silver will be utilized each year in the industry.
AI Boom to Surge Silver Demand
The Artificial Intelligence (AI) boom is expected to drive increased demand for precious metals in years to come. AI innovators such as Open AI (ChatGPT) have fueled demand for high performance computing chips to power AI technology advances in the world’s largest industries, gaming, creative design, autonomous vehicles and robotics. With AI devices requiring sophisticated components such as silver-palladium, gold bonding wire and gold plating, precious metals demand is expected to significantly increase in order to meet the ever-increasing needs of chips to support the exponential growth of AI.
“What we’re talking about here isn’t even exponential growth.
It’s a quantum leap” – Legacy Research
Growing Silver Demand from Solar Technology
Silver is an essential and critical metal for the future, especially in green energy applications. Globally, solar is the fastest growing of all sources of renewable energy with about 440 GW installed in 2023.
The rise of AI will drive a greater adoption of solar panels, as the significant energy demands of AI processing will require sustainable power solutions.
Silver’s use in photovoltaics increased to 193.5 Million ounces of silver in 2023 & projected to surge to 232 Million ounces in 2024
Silver's Bright & Bullish Future
- Global silver mine production is anticipated to fall to 823.5Moz in 2024.
- Supply trends cannot keep up with longer-term demand.
- The silver market has been in a physical deficit since 2019
- Silver mine supply has been in decline since 2016.
- There has been a lack of funds going into silver mine development and the timelines from discovery to production have gotten longer.
- All segments of silver demand are rebounding, led by industrial, jewelry and physical investment.
- Silver inventories at LBMA & COMEX are depleting.
- Silver is likely to benefit from supply constraints in the face of growing demand. Green technology and de-carbonization trends to continue and increase.
- Commodities Super-Cycle underway
Silver Market Potential Upside
Silver Chart compliments of Kevin Wadsworth & Patrick Karim: northstarbadcharts.com