Why silver is the unsung hero of the modern world

Demand for silver continues to rise, driven by technologies such as solar power and AI.

In 2023 alone, the silver market saw a 15% supply shortfall. Additionally, the market is expected to reach a cumulative shortfall of 1,093.4 million ounces between 2020 and 2024.

In this graph of Silver outcrop, Visual Capitalist’s Bruno Venditti discusses how new mines are needed to meet the high demand for metal.

Silver is essential for new technologies

According to Sprott, silver is second only to oil as one of the most used commodities, with more than 10,000 applications worldwide.

Metal is a key component in photovoltaic cells used in solar energy. The average solar panel requires 20 grams of silver.

Electric vehicles also use between 25 and 50 grams of silver.

In addition, metal is essential for semiconductors, controls, sensors and LIDAR technology in AI transport. Silver is also central to healthcare AI through conductive silver nanoparticles in wearable electronic skin patches.

The mobile phone contains an average of 0.34 grams of silver.

Risk of a supply shortage

Despite the importance of silver, declining ore grades and depletion of reserves at existing mines are reducing metal production.

The industry also suffers from a lack of investment in primary silver mines. Today, over 70% of silver is mined as a by-product of gold, copper and other metals.

Production is also concentrated in three countries – Mexico, Peru and China – which together account for half of global silver production.

The Future of Silver

If current circumstances continue, new mines will be needed to meet the growing demand.

Outcrop Silver is rapidly advancing the high-grade Santa Ana silver deposit in the Mariquita district, known as the highest-grade primary silver district in Colombia, with historic silver grades among the highest in Latin America.

The grade indicated for the Santa Ana project is ranked second highest in the world.

By Zerohedge.com

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