The Silver Institute has said the amount of silver used in production will fall this year, driven by developments in the solar energy sector. The institute also says the silver market will remain in deficit for the sixth year in a row. Philip Newman, managing director of independent research consultancy Metals Focus, explains pv magazine the fact that prices have recovered quite well after the late January correction shows the underlying strength of investor interest in silver.
According to an analysis published by the Silver Institute, the photovoltaic industry is expected to use less silver by 2026.
The Washington-based association has said industrial production of silver is expected to decline 2% annually in 2026, to a four-year low of about 650 million ounces.
It is explained that the trend, like last year, will be supported by developments in the solar energy sector. “While global solar installations are expected to continue to rise, continued thrift and outright substitution of silver will result in declining demand for silver PV,” the institute added.
Some of the declining demand in the solar energy sector will be offset by increasing use of silver in other industries, the institute’s analysis continues, namely through the expansion of data centers, AI-related technologies and the automotive sector.
Despite the expected reduction in industrial production of silver, the silver market is expected to remain in deficit for the sixth year in a row in 2026, with total supply less than demand.
The Silver Institute says the underlying factors that supported silver for much of 2025, including tight physical supply in London, a volatile geopolitical backdrop, US policy uncertainty and concerns about the independence of the Federal Reserve, have all held in place so far this year.
The price of silver has made headlines in recent months, rising about 130% over the past six months and about 243% over the past year to reach an all-time high of $121.65 per ounce on January 29.
Prices fell sharply early February, like expected by leading analystsand have stabilized around the low $80s per ounce, standing at $83.51 per ounce as of today.
Philip Newman, managing director of independent research consultancy Metals Focus, explains pv magazine the fact that prices have recovered quite well after the late January correction shows the underlying strength of investor interest in silver.
“As such, we expect prices to rise further this year, although this will be accompanied by high price volatility,” Newman added.
Research published last September showed that the PV industry could take this into account 40% of global silver demand by 2030.
This content is copyrighted and may not be reused. If you would like to collaborate with us and reuse some of our content, please contact: editors@pv-magazine.com.
