Due to its high electrical conductivity and durability, Silver has become important to the solar industry. With the installation of solar capacity rapidly growing its role as an industrial metal is developing. This year China is expected to add nearly as much as the total installed capacity in the US. By 2025, we expect industrial demand for Silver (from solar) to make up 53% of total demand. This will place increasing pressure on supplies.

Growth in mine production is largely beholden to other metals projects for which Silver is a by-product. Scrap, which makes up nearly 20% of supply, is also lagging. Above ground inventories remain plentiful but have dropped sharply over the past couple of years.

We estimate the Silver market is entering a period of tightness unseen for decades. This may not be alleviated by higher Silver prices.