Solar Is About to Drain the Silver Market – Prices Won’t Stay Cheap Much Longer

A striking new post from analyst Lukas Ekwueme does look interesting for silver holders, and not because of short-term price swings or trader hype. Instead, the focus is moving to something much bigger: structural demand.

The image Lukas shared frames silver as “the critical catalyst of the solar revolution,” and the numbers attached to that claim are hard to ignore. Photovoltaic (PV) solar demand for silver has quietly surged over the past decade, turning into one of the strongest long-term consumption drivers in the entire commodities space.

Solar Demand Is Becoming a Silver Monster

According to the data in the post, PV-related silver demand sat around 82 million ounces in 2016. By 2024, that number had jumped to roughly 198 million ounces.

That is a massive 140% increase in only eight years.

This is a structural shift in how silver is being consumed. Solar is no longer a niche use case as it’s becoming one of the dominant industrial forces behind silver demand.

And the projections get even more aggressive.

By 2030, PV silver demand is expected to reach between 320 and 450 million ounces annually. That implies 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.

That is the kind of demand pressure that commodity markets do not absorb easily.

Why Silver Is Not Easily Replaceable in Solar Cells

The infographic also explains the core issue: silver is essential in solar panel architecture because of its unmatched electrical conductivity.

Silver paste is used in the conductive grid that captures electrons and turns sunlight into usable electricity. There are ongoing efforts to thrift or substitute silver, but the reality is simple: efficiency matters, and silver remains one of the best materials available.

That makes this demand sticky. It doesn’t disappear just because prices rise.

Read also: Here’s Where Silver Price Could Be Headed Next If $71 Support Breaks

The Market Is Already Running Deficits

Lukas adds another key point: silver is not entering this demand boom from a position of surplus.

The market has reportedly seen five consecutive years of silver deficits, meaning consumption has been exceeding supply.

Deficits like that don’t resolve quietly. They drain inventories over time, and once above-ground stockpiles tighten, pricing pressure tends to build fast.

This is where silver becomes different from many other commodities. It’s about how much accessible inventory remains when demand explodes.

Read also: This Analyst Makes Urgent Silver Price Prediction

Strategic Metal Status Changes the Game

The post also highlights something increasingly important: silver is being treated more and more like a strategic resource.

Military applications are growing, industrial use is accelerating, and governments are paying closer attention to supply chains tied to critical metals.

When a commodity becomes strategic, it stops trading like a simple industrial input and starts trading like a necessity.

That can reshape how capital flows into the sector.

Silver Prices May Not Stay “Cheap” for Long

The broader takeaway from Lukas Ekwueme’s post is clear: solar demand is becoming too large to ignore, and silver supply is not expanding fast enough to comfortably meet it.

If PV demand continues rising toward the 320–450 Moz range, the market could face an uncomfortable reality: silver may be structurally undersupplied for years.

That is how squeezes begin.

Not with hype, but with math.

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The post Solar Is About to Drain the Silver Market – Prices Won’t Stay Cheap Much Longer appeared first on CaptainAltcoin.