Silver Demand Surges as AI Boom Creates Supply Deficit

The U.S. Mint stopped accepting silver bullion in exchange for dollars due to a law change, leaving thousands of miners frustrated.

A miner's experience was recorded by the U.S. Mint in the past when he tried to exchange his silver ore for dollars at the mint.

In 2020, the Energy Act introduced the Critical Minerals List, and in November last year, silver was added to this list due to its essential role in industry and electronics.

Silver is now used in the solar industry, with photovoltaic manufacturers consuming 197.5 million ounces of silver in 2024, which accounts for around 30% of all industrial silver demand on earth.

The solar industry adjusted its engineering to require less silver when prices soared from $31 an ounce in January 2025 to over $120 in January 2026.

However, despite this reduction, the data shows that industrial silver demand has only fallen by 3%, leaving a significant supply deficit of around 46.3 million ounces this year.