Natural Resources – Silver

Importance and Applications of Silver

Silver is a metal used in industry, electronics, medicine, and jewelry. Its most important applications include:

1. Solar Energy and Electronics

• Solar Panels: Silver is used in photovoltaic (PV) solar panels, helping convert sunlight into electricity.
• Electronic Devices: Due to its excellent electrical conductivity, silver is used in circuit boards, mobile phones, computers, and medical devices.
• Battery and Energy Storage Technology: Silver enhances the reliability and durability of batteries and capacitors.

2. Medicine and Antibacterial Properties

• Wound Dressings and Medical Instruments contain silver due to its antibacterial and anti-inflammatory properties.
• Water Filtration and Purification Systems use silver because it can destroy harmful microorganisms and prevent bacterial growth.

3. Jewelry Industry and Investment

• Jewelry: Silver is a popular material in the jewelry industry because it is durable, beautiful, and more affordable than gold.
• Investment Silver: Investors buy silver in the form of coins and bars, as it is a safe way to preserve assets against inflation.

Silver Mining Process

In mining operations, silver extraction and processing occur in three stages to ensure high-quality and pure metal.

Identifying Deposits and Geological Studies

The first step in mining is identifying high-quality silver deposits. This involves:

• Magnetometric Surveys, which help map the distribution of metals and minerals.
• Geological Sampling and Drilling, used to assess ore quality and concentration.
• Satellite Technology and Drones, used for precise modeling of mining areas.

Ore Extraction and Processing

Once a high-quality deposit is found, the silver extraction process begins. Since silver is often found alongside lead, copper, and zinc, selective mining technologies are used to maximize yield and reduce waste.

After mining, the ore undergoes the following stages:

• Crushing and Grinding – large rocks are turned into fine powder.
• Chemical Separation (Leaching and Flotation) – silver is separated from other minerals.
• Smelting and Refining, ensuring 99.9% purity of the metal.

Refining and Environmentally Friendly Technologies
Our refining process employs innovative and sustainable solutions, including:

• Cupellation (Fire Assay Process) – a traditional silver purification method that removes impurities such as lead and copper.
• Biochemical Leaching – uses specialized bacteria to naturally dissolve silver in ore, reducing the need for harmful chemicals.

Silver Price Forecast for the Next Decade

Silver demand and supply are on the brink of significant changes over the next decade, driven by industrial and technological developments.

Industrial Demand

• Solar Energy Production: Silver usage in solar panels has significantly increased. Studies suggest that by 2027, solar energy production could require over 20% of the current annual silver supply, and by 2050, this demand could reach 85–98% of today’s global silver reserves.
• Electric Vehicles: The growth of electric vehicle production increases silver demand, as it is used in various components, including batteries and electronics.

Supply and Demand Dynamics

• Supply Deficit: In 2022, the silver market experienced a deficit of 237.7 million ounces (approximately 7.39 million kilograms or 7,393 tons), marking the second consecutive year of shortage.
• Price Forecasts: Analysts predict that silver prices could exceed inflation-adjusted peak levels in the next 10–15 years, reaching around $200 per ounce or $6,428 per kilogram.

Overall, silver demand is expected to grow significantly over the next decade, particularly in the solar energy and electric vehicle sectors. However, limited supply and existing shortages may lead to price increases, reflecting market imbalances. (This is an opinion and should not be considered a factual statement.)