A striking analysis by financial expert Lukas Ekwueme highlights a seismic shift in the silver market, driven by the solar energy revolution. Photovoltaic (PV) solar demand for silver has surged from approximately 82 million ounces in 2016 to roughly 198 million ounces in 2024—a 140% increase in just eight years. This is not a transient trend but a structural shift, with solar evolving from a niche use case into one of the dominant industrial forces behind silver consumption.
Projections are even more aggressive. By 2030, PV silver demand is expected to reach between 320 and 450 million ounces annually, implying another 60% to 130% increase from current levels. At the upper end, solar alone could consume close to half of today's global silver production. The demand is considered "sticky" because silver's unmatched electrical conductivity makes it essential in solar panel architecture; efficiency concerns limit the potential for substitution despite rising prices.
Compounding this demand surge is a supply-side crunch. The silver market has reportedly seen five consecutive years of deficits, where consumption exceeds supply. This drains above-ground inventories, setting the stage for significant pricing pressure as accessible stockpiles tighten. Furthermore, silver is increasingly being treated as a strategic resource due to growing military and industrial applications, which can reshape capital flows into the sector.
In a separate but related macro analysis, financial analyst Kevin Smith argues that the recent volatility in silver and precious metals is a reset, not an end. He posits that the US dollar may be entering a third historic devaluation wave, following the Great Depression era and the post-1971 Bretton Woods collapse. Smith's chart analysis shows gold beginning to outperform the S&P 500, a historical signal of eroding confidence in the currency and financial system.
Smith describes a "Great Rotation" underway—a multi-year institutional shift away from US megacap tech, large-cap indices, and the dollar itself, and into hard assets like precious metals and critical materials. Within this setup, silver is positioned as the high-torque volatility hedge that tends to lag gold early in macro cycles but then violently catch up. The recent sharp correction in silver prices is framed not as bearish, but as a healthy pullback creating an entry point before the next leg higher, driven by both explosive industrial demand and a potential dollar devaluation cycle.
