Silver Demand in Solar Industry Faces Decline Amid Rising Prices

The prices of silver, platinum, and palladium have risen sharply in recent times. The price of silver has surpassed its highest level since late June, increasing by over 10%. This sharp increase has led to a fall in the gold/silver ratio below 70.

However, analysts suggest that the demand for silver from the solar industry may be slowing down. According to estimates, the use of silver in silicon solar cells is expected to decrease by 17% this year, marking the second consecutive year of decline.

This is attributed to the rise in silver prices, which reached a record high of $120/oz at the end of January. As a result, user industries are looking for cheaper substitutes that are equally effective.

The solar industry's share of total silver demand is projected to fall to 14%, down from 18% last year. This decline in demand could have significant implications for the silver market.