The Industrial Pressure on Silver

Silver is no longer just a “precious metal.” It’s a critical industrial resource, used in solar panels, EVs, electronics, data centers, and defense systems. Much of it is consumed permanently, and global demand consistently outpaces mine production and recycling. Unlike gold, silver can’t easily be hoarded or recovered once industrially used, creating a structural supply squeeze that will shape prices for years. China treats silver and other strategic metals as essential national assets. By controlling supply chains, regulating exports, and prioritizing domestic use, it has strengthened its global market position. While it imports silver, there’s no evidence it’s “draining” Western vaults, China is simply managing resources to meet industrial and geopolitical priorities, which naturally affects global prices.

Silver, the Dollar, and Market Volatility

Dollar weakness can influence global commodity pricing, while paper silver markets remain liquid and subject to margin controls, causing short-term swings. But physical silver is constrained and highly demanded. Long-term investors should focus on fundamentals: industrial demand, limited supply, and geopolitical factors, recognizing silver’s growing role as a strategic, consumable asset.