Silver Prices Plummet Below $63.40 Amid Solar Demand Slump
Silver prices broke below $63.40 on August 19, marking a bearish setup after testing $66.40 just one day prior. This development follows Free Press Journal's report that solar-module silver use could fall by as much as 19% in 2026, reducing the share of total silver demand from photovoltaics to 14%. The Silver Institute still forecasts a market deficit of 46.3Moz in 2026, up from 40.3Moz in 2025.
The forecasted deficit stems from total demand falling by 2% despite an expected rise of 18% in coin and bar demand. Reuters reported that 762Moz had been drawn from silver stocks since 2021, a trend that Metals Focus attributes to inventory drawdowns rather than oversupply. Byproduct supply limitations also support the contrarian case for tightness.
Philip Newman, Managing Director at Metals Focus, noted that London lease rates have largely normalized but another liquidity squeeze this year remains possible. The mix of silver sources ties production to host-metal economics and mine plans, slowing the response to price moves. Three variables still need monitoring: when photovoltaic thrifting stabilizes, whether London inventories tighten again, and whether silver reclaims $63.40.