The role of silver in the global energy transition
Silver plays a crucial role in the global energy transition, especially in the production of solar panels and electric vehicles. Demand for industrial silver, which is expected to rise 9% by 2024, continues to drive the market.
This demand, especially for photovoltaic panels, has pushed silver prices higher, surpassing $32 per ounce for the first time in a decade.
Mexico, the world’s largest silver producer, contributes 25% of the global supply. Companies such as Mithril Silver and Boab Metals are actively exploring new silver projects, underscoring the growing importance of this precious metal in clean energy technologies.
Shanghai Silver Premium and Global Market Impact
The silver premium in Shanghai, a key indicator of Chinese domestic demand, has risen from 2% to 13.7% over the past year. This reflects rising demand from China’s photovoltaic industry and signals potential global price volatility.
As silver holdings in ETFs decline, China’s growing industrial demand is outpacing global supply, potentially pushing up international prices.
In conclusion, the rising silver premium in Shanghai underlines China’s important role in shaping global silver markets, with demand likely to influence prices well into 2024.