Silver continues to outperform gold as its price approaches the $50 per ounce barrier, having risen by about 67% since the beginning of the year. Despite the strong momentum, the British research firm Metals Focus warned that high prices could impact industrial demand, particularly in the solar energy sector, which relies heavily on silver in the manufacture of photovoltaic panels. The firm explained that companies in this sector have already begun reducing their silver usage per watt of power, and this could increase as prices continue to rise.
According to a report by the World Silver Institute, the industry is expected to consume approximately 195.7 million tons of silver this year, a slight decrease from 2024 levels. Analysts also indicated a potential decline in silver consumption of 15-20% due to technological developments and partial substitution with alternative materials. However, Metals Focus confirms that the decline in industrial demand will not change the overall market trend, as the supply deficit is still expected at 187.6 million ounces, the third largest deficit on record. Market analysts believe that the growth of the global solar energy sector will continue to support demand for silver despite price pressures.
