Silver Prices Skyrocket, Repeatedly Hitting New Highs

The silver market continues to trade above $58 per ounce, supported by robust buying interest and positive long-term demand prospects.

During the December 3rd session, spot silver prices hovered around $58.7 per ounce, marking a staggering 100% year-to-date increase—the strongest annual gain since 1979. This surge is fueled by retail buying, while industrial demand plays a pivotal role in depleting inventories and underpinning the long-term upward trend.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, notes that silver’s dramatic rise reflects a “deep disconnect between increasingly scarce physical supply and a favorable macroeconomic backdrop.” He observes that the market has reached a “tipping point,” shifting from trading on deficit expectations to responding to actual supply constraints.

Industrial Demand: A Sustainable Driver

Within the global silver consumption landscape, the green energy sector is emerging as a key player. Silver is indispensable in photovoltaic solar panels and benefits from the electrification trend and expanding investments in renewable energy infrastructure.

A Tuesday report from the World Economic Forum (WEF) highlights the green economy’s exponential growth, now valued at over $5 trillion and projected to surpass $7 trillion annually by 2030. According to the WEF, 55% of global emissions could be mitigated using cost-competitive low-carbon technologies.

Declining technology costs are reinforcing this trend. Since 2010, solar panel and lithium-ion battery costs have plummeted by 90%, while offshore wind costs have halved, broadening the application scope of clean energy technologies. Despite recent U.S. policy shifts reducing its leadership role, China maintains dominance in green technology manufacturing, innovation, and deployment, per the WEF.

Solar Energy’s Persistent Silver Demand

The Silver Institute projects that the solar energy sector will consume 195.7 metric tons of silver this year, a slight decrease from 2024 due to reduced silver content per panel through technological advancements. However, record global solar installation capacity ensures stable, long-term silver demand.

While the Institute forecasts a 5% year-over-year decline in photovoltaic silver demand, it emphasizes that this reduction is insignificant compared to the renewable energy sector’s rapid expansion.

Tightening Supply: The Market’s Greatest Risk

Amid soaring demand, supply constraints pose a significant challenge. Matthew Piggott, Director of Gold and Silver at Metals Focus, warns of potential annual silver shortages in the coming years. Although high prices may incentivize producers to explore substitutes like copper, Piggott stresses that alternative technologies remain in nascent stages.

He anticipates sustained high silver demand in solar energy for the next 12–24 months, contingent on technological progress and global renewable project deployment rates.

Optimistic Outlook

In Vietnam, silver prices have also reached new highs. According to data from Phu Quy Jewelry Joint Stock Company, 1 kg 999 silver bars were priced at VND 58,719 million (buy) and VND 60,530 million (sell) as of December 3rd. Since the year’s start, domestic silver bar prices have surged over 100.5%, yielding substantial gains for investors.