"Silver is no longer the 'mini gold' it once was. While gold primarily reacts to defensive flows and safe-haven demand, silver has increasingly evolved into a hybrid asset - influenced both by investment flows and heavily tied to industrial cycles."
"The market is facing a structural reality: a persistent supply deficit. In 2026, silver is expected to record its sixth consecutive annual deficit, with a shortfall of around 46 million ounces."
"The primary driver behind this imbalance is the global energy transition. The solar industry alone accounts for roughly 25% of global silver demand, alongside growing demand from electric vehicles, AI, data centers, and broader electrification trends."
Silver has experienced significant volatility, peaking at $121.7 before declining to around $78. This decline indicates a shift in market perception, as silver transitions from a 'mini gold' to a hybrid asset influenced by both investment flows and industrial cycles. With higher interest rates and a strong dollar, silver faces pressure as a non-yielding asset. However, a persistent supply deficit, driven by industrial demand, particularly from the solar industry and electric vehicles, positions silver as a critical metal for future growth.
Read at London Business News | Londonlovesbusiness.com
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