What is driving silver's price action?
COMEX silver futures rose 6.4% to $67.97/oz on June 15 as industrial buying resumed. The metal had corrected sharply from its January record high of $121/oz but is finding support near $64-65.
The structural deficit is the core story. The Silver Institute projects a ~150Moz shortfall for 2025-2026. Total demand was ~1.16 billion ounces in 2024 versus supply of ~1,014Moz, the deficit being filled from above-ground stocks.
How does industrial demand affect the market?
Industrial demand reached a record ~720Moz in 2025, driven primarily by solar photovoltaic manufacturing. Each GW of installed solar capacity consumes roughly 20 tonnes of silver. Global solar installations are expected to grow 15-20% in 2026.
Beyond solar, silver demand from electronics, brazing alloys, and semiconductors continues to grow. The metal's unique conductive properties make it difficult to substitute in key applications despite high prices.
Silver surged 6.4% on Monday, breaking above $67 resistance on strong industrial buying. The metal has recovered significantly from the January correction that took prices from $121 to the low $60s.
The structural deficit remains the dominant narrative. The Silver Institute reports total demand exceeded supply by roughly 150-185Moz in 2024, with a similar gap projected for 2025-2026. Mine production was 820Moz in 2024, growing only 0.9% year-on-year, while recycling reached a 12-year high of ~194Moz.
Industrial demand is the primary driver. Solar photovoltaic manufacturing consumed a record share of silver in 2025, and electronics demand continues to grow. Industrial applications now account for more than 60% of total demand, up from ~50% a decade ago.
J.P. Morgan forecasts silver averaging $75-85/oz for 2026, with upside risk if the deficit widens. The gold-to-silver ratio at ~62 suggests silver is undervalued relative to gold on a historical basis.
The persistent supply deficit makes silver a strategic hedge for industrial buyers. With solar and electronics demand growing and mine supply constrained, consider securing 6-month forward coverage at current levels. The deficit is structural, not cyclical.