silver is surging as demand from the rapidly expanding solar energy sector threatens to outstrip supply, with projections indicating a potential 13 percent increase in demand beyond 2024 levels by 2030. This performance is currently outpacing gains seen in gold, traditionally a safe-haven asset, as investors and industrial consumers alike recognize silver’s critical role in the green energy transition.
The International Energy Agency (IEA) forecasts the installation of 4,000 gigawatts of new solar capacity between 2024 and 2030. This expansion will substantially boost silver demand, estimated to rise by nearly 150 million ounces annually by 2030. Silver is a key component in solar panel manufacturing, utilized for its high electrical conductivity in the production of solar cells and related components. The escalating demand is driven by global efforts to increase renewable energy adoption and reduce reliance on fossil fuels.
While silver has long been valued for its industrial applications and as a monetary metal, its increasing importance in the renewable energy sector is reshaping market dynamics. This shift is attracting investment and driving up prices, potentially positioning silver as a key beneficiary of the global energy transition. Investors are closely monitoring these trends, anticipating further price recognition as the demand for solar energy-and the silver it requires-continues to grow.
Silver can be seen as a sort of bridesmaid for gold in the precious metals markets, often overshadowed by its better-known rival, Russell says. However, the spot price of silver, i.e. the price for immediate delivery of the metal, has been in a permanent upward trend as October 2023.
From a low of $20.67 per troy ounce on October 3, 2023, it has risen roughly 160 percent to new record levels through November this year. Silver closes this week at roughly $53 per ounce.
Spot price of gold rose 142 percent from a low of $1,813.90 an ounce on October 3, 2023, to a record high of $4,381.21 an ounce on October 20 this year. At the end of this week, gold hovered around the $4,221 level.
Even though silver did not significantly outperform gold, its stronger gains were ignored by the media, wich focused more on the perhaps more attractive of the two precious metals, the analyst reports.
Silver also has a history of higher percentage returns than gold. Since October 2008, its price has risen 431 percent to a then-record high of $48.24 an ounce on April 27, 2011.
Which precious metal do you see as a better investment for the next few years?
Silver – it will be helped by the growing demand also from, for example, solar technologies
26
Gold – a customary safe haven
29
Neither – I’m looking for other investments
14
Voted: 94
During this period, gold also rose to its then high of $1920.30 per ounce, where it was on September 6, 2011. But its gain was more modest, representing 168 percent.
When prices rise, the media focuses more on gold, given its historical role as a store of value and its attractiveness as jewelry, the commentator reminds.
Current upward trend in prices precious metals was further amplified by the return of Donald Trump to the office of the President of the United States.Trump raised expectations that monetary policy would be eased, but also raised fears of a loss of confidence in US assets such as Treasuries as his administration seeks greater control over the US central bank (Fed).
What do precious metals benefit from?
The growth of the gold price is driven by purchases by central banks and strong investor interest in exchange-traded funds (ETF) and also gold bars and coins. Silver also benefits from this interest,but its lower value makes it more expensive to store physical silver,which limits its investment attractiveness. but a more convincing argument for silver price growth is growing industrial demand and limited opportunities to increase mining, according to Russell.
The International Energy Agency (IEA) expects 4,000 gigawatts of new solar capacity to be installed between 2024 and 2030. This suggests that solar energy alone will increase silver demand by nearly 150 million ounces per year by 2030, which would represent an additional 13 percent beyond physical demand in 2024.
