Silver

Silver has been one of the most important precious metals for centuries, both economically and industrially. Its value comes from its rarity, aesthetic appeal, and unique chemical and physical properties, making it indispensable in various industries, including electronics, medicine, and the renewable energy sector.

Silver Prices and Mining Volumes – Last 50 Years

Silver Price History (1974–2024)

Over the last 50 years, silver prices have been closely linked to economic and geopolitical events.

1970s – 1980s:

• Silver prices remained relatively stable until 1979–1980, when they surged to a record high of nearly $50 per ounce.
• Measures by the U.S. Federal Reserve increased interest rates, leading to a price drop, with silver falling below $10 per ounce by 1981.<(li>

1990s – 2000s:

• Between 1990 and 2003, silver prices remained relatively low, averaging between $5–$7 per ounce.
• Industrial demand increased with the rise of the electronics industry. The 2008 financial crisis led to a significant price surge as investors sought safe-haven assets.

2010s – 2024:

• In 2011, silver prices climbed above $45 per ounce due to quantitative easing and economic uncertainty.
• After 2013, prices stabilized between $15–$25 per ounce until the COVID-19 crisis in 2020 pushed prices above $28 per ounce.</&li>

Silver Mining Volumes Over the Last 50 Years

• In the 1970s, global silver mining output was around 10,000 tons per year.
• By the 1990s, mining volumes increased to 16,000–18,000 tons annually.
• In the early 2000s, annual production exceeded 20,000 tons.
• By 2020, global silver production reached 25,000–26,000 tons per year, with the largest producers being Mexico, Peru, China, and Russia.

Silver Price and Mining Over the Last 10 Years (2014–2024)

Price Trends

• 2014–2018: Silver prices fluctuated between $15–$18 per ounce, as global economies remained stable.
• 2019–2021: Prices surged to $28 per ounce due to the COVID-19 pandemic and economic stimulus programs.
• 2022–2024: The average price stabilized at $23–$27 per ounce, influenced by inflation and growing demand from green technologies.

Mining Volumes

• 2014–2018: Average annual production was 25,000 tons.
• 2019–2022: COVID-19 shutdowns affected mining, but production stabilized at 24,000–26,000 tons per year.
• 2023–2024: Expected production is around 26,500 tons, driven by increasing demand in the renewable energy sector.

Silver Price and Mining Volume Forecast for the Next 10 Years (2025–2035)

Projected Prices and Market Development

Experts predict that:

• 2025–2030: Silver prices may rise to $30–$50 per ounce as electric vehicles and renewable energy solutions require more silver.
• 2030–2035: Possible price range of $50–$75 per ounce as green technologies and nanotechnology advance further.

Mining Volumes

• 2025–2030: Global silver production may increase to 28,000–30,000 tons per year, assuming new mines are opened.
• 2030–2035: Mining growth may be limited as many silver reserves are depleting, leading to an increased reliance on recycling.

How Do Inflation and Consumption Growth Affect Silver Prices?

1. Inflation:

• Like other precious metals, silver is a hedge against inflation. When inflation rises, silver prices increase as investors seek assets that retain value.
• Historically, silver has appreciated by an average of 5–10% per year during inflationary periods.

2. Consumption Growth:

• Renewable Energy: Solar panels consume a significant amount of silver. By 2030, up to 20% of the world’s silver supply could be used for solar energy alone.
• Electronics: Smartphones, electric vehicles, and 5G networks require silver due to its excellent conductivity.
• Medical Industry: Silver is used in healthcare for its antimicrobial properties.

Silver Applications

1. Industry and Electronics (55%)

Silver is the best electrical conductor, making it essential for:

• Electrical devices
• Electric vehicles
• 5G infrastructure
• Solar panels

2. Jewelry and Investment Silver (30%)

• Silver is popular in jewelry, especially in India and China.
• Investment silver (coins and bars) increases in demand during economic crises.

3. Medical and Antibacterial Applications (10%)

Silver kills bacteria and viruses, making it useful in:

• Wound dressings
• Medical devices
• Water purification systems

4. Other Applications (5%)

• Photography (silver nitrate)
• Mirrors and optics
• Chemical industry

Conclusion

The silver market has expanded in recent decades due to technological advancements. While industrial demand and inflation support prices, supply and recycling also play crucial roles. Over the next ten years, silver will remain a critical resource, especially for renewable energy and the electronics industry, leading to increased demand and potential price hikes.

(This is an opinion and should not be considered a factual statement.)