In a remarkable turn of events, silver has exceeded the significant $100 per ounce threshold, fueled by accelerating demand from solar energy applications and an enduring scarcity in supply. This milestone was achieved just over three months after silver closed at $48.68 per ounce on October 31, 2025, reflecting a substantial price appreciation of 104 percent.
To contextualize the scale of this development, the volume of silver held above ground—including bullion, coins, jewelry, and industrial items—is estimated at about 56 billion ounces. Applying the October closing price yields a total market value approximating $2.73 trillion. Fast forward to the current price near $99 per ounce, the valuation has soared to around $5.56 trillion. This reflects an incremental addition of roughly $2.83 trillion to silver’s market capitalization within a span of ninety days. By comparison, this increase amounts to one and a half times the entire market capitalization of Bitcoin, which stands at $1.84 trillion.
Meanwhile, Bitcoin has experienced a notable descent during the same timeframe, retreating from a peak of $126,000 in October to about $89,000 today. Correspondingly, its market capitalization diminished by over $600 billion, descending from more than $2.4 trillion to its current level.
The driving forces behind silver’s rapid ascent can be traced to a convergence of industrial demand amplification and constrained supply. A significant contributor to demand is the solar energy sector, which presently accounts for 29 percent of total industrial silver consumption, a rise from 11 percent in 2014 according to the Silver Institute's World Silver Survey 2025. Each solar panel incorporates between 15 and 25 grams of silver. Projections indicate that worldwide solar capacity will reach 665 gigawatts in 2026, suggesting increasing silver requirements to support these installations.
In addition to solar panels, the growing electric vehicle market is another important industrial driver. Electric vehicles utilize approximately 25 to 50 grams of silver per unit, compared to 15 to 28 grams found in conventional automobiles. This trend underscores an expanding demand base for silver, firmly linked to the global transition toward green energy solutions.
On the supply front, silver availability remains tight. The Silver Institute reported that 2024 was the fourth year in succession to record a supply deficit. That year, mine production totaled 819.7 million ounces, while total demand reached 1.16 billion ounces. Industrial consumption alone hit a record of 680.5 million ounces.
Underlying these deficits is a structural challenge: over 70 percent of silver is obtained incidentally during the mining of other metals such as lead, zinc, and copper. This byproduct nature limits producers' ability to increase silver output swiftly in response to price movements.
Further research from Ghent University in combination with Engie Laborelec forecasts that by 2030, global silver demand may range between 48,000 and 52,000 metric tons annually, while supply is projected to reach only about 34,000 metric tons. Of notable concern, the solar industry alone could consume 29 to 41 percent of the anticipated global silver supply by the end of the decade.
Looking forward, silver is now approaching a critical psychological price point at $100 per ounce. The pertinent question evolves beyond if silver can surpass this level to whether this price establishes a new base rather than serving as an upper limit.
Fundamental factors supporting the silver market remain robust. Persistent supply shortfalls coupled with escalating industrial consumption underscore the metal’s growing strategic importance. Additionally, ongoing geopolitical tensions foster safe-haven interest in physical assets like silver.
Consequently, silver's reputation is evolving from that of a historically 'boring' precious metal to an essential component in the technological and industrial future, driven by renewable energy and electric vehicles. This transformation offers important insights for investors and trade professionals alike regarding the potential risks and opportunities inherent in silver markets.