Silver is quietly rising in price more sharply than gold.
Silver has quietly outpaced gold in price thanks to booming industrial demand, particularly from the solar energy sector, and a persistent supply shortage.
Despite often being seen as the "shadow" of gold, silver has quietly delivered higher returns for investors. From October 2023 to the present, the price of silver has increased by 163%, reaching a record high of $54.38 per ounce before falling back to $51.33.
During the same period, the price of gold increased by 142% to a peak of $4,381 per ounce before undergoing a slight correction. Although the difference was not significant, silver showed a more stable upward trend despite receiving less media attention.
In the past, silver has experienced significant price increases, such as the period from 2008 to 2011 when the price of silver rose 431% to $48.24 per ounce, far outpacing the 168% increase of gold during the same period.
Gold is often mentioned more frequently because of its historical role as a store of value and its appeal in the jewelry market. The wave of expectations for monetary easing following Donald Trump's return to the White House also contributed to the upward trend of both gold and silver.
Silver has a clear long-term advantage due to strong industrial demand, particularly from solar panel production. In 2024, industrial silver demand reached 689.1 million ounces, of which more than 243 million ounces were for solar panels, a 158% increase from 2020. With global solar power capacity projected to nearly double to 1,000 GW by 2030, silver demand from this sector could increase by an additional 150 million ounces annually.
The silver market is facing a severe shortage, with a projected deficit of over 501 million ounces in 2024. Most silver is mined as a byproduct of copper, lead, zinc, and gold, making its supply heavily dependent on these industries.
Despite expectations of increased production, expanding existing mines or developing new projects will take a long time. Several mines are scheduled to close between now and 2030, potentially reducing global silver production to around 901 million ounces.
With industrial demand growing faster than supply, silver is entering a sustainable growth cycle. Gold remains a key player in the precious metals market, but silver is showing superior potential thanks to real demand from green technologies.
