Charted: What's Driving Global Silver Demand?

Silver has long been the quiet workhorse of the global economy, essential in everything from electronics and jewelry to medical devices and clean energy. But a nearly 4x surge in prices since 2022 has pushed it firmly into the spotlight, forcing industries that depend on it to confront a new cost reality.

Nowhere is this pressure more acute than in solar power, where silver's share of a module's total cost has jumped from roughly 5% to nearly 20%, according to Metals Focus. There was 36.2 gigawatts of utility-scale solar capacity that came online between the US and Canada last year, according to Orennia.

The estimated demand for silver last year by sector, according to The Silver Institute. 

• Investments: 18%
• Photovoltaics: 17%
• Jewelry: 17%
• Brazing alloys and solders: 5%
• Silverware: 4%
• Photography: 2%
• Other electronics: 24%
• Other industrial: 14%

Silver is mined primarily as a byproduct of lead, zinc, copper, and gold operations, meaning supply is largely inelastic and slow to respond to demand signals. That constraint has contributed to a dramatic price run-up: silver has climbed nearly 300% since 2022, reaching $114 per troy ounce earlier this year. 

The solar industry is facing a particular squeeze, with the precious metal, which is used for its electrical conductivity, now accounting for nearly one-fifth of panel costs. As a result, firms are actively working to reduce the amount of silver used in panels.