Silver Prices Plunge as High Costs Hit Solar Industry Demand
Silver prices rose significantly in August, outperforming gold and delivering a 15 per cent return. However, this trend has reversed in September, with silver experiencing a larger drawdown than gold.
The sharp increase in silver prices is now threatening its 'green' dream run, which was fueled by growing demand from new industries such as solar energy, electric vehicles, and artificial intelligence.
Solar panel manufacturers have been actively reducing their use of silver paste or replacing it with cheaper alternatives due to the high cost.
In contrast, gold continues to attract institutional investors and central banks, which are buying it despite record-high prices. The People's Bank of China added 20 tonnes of gold to its reserves in August, while global gold-backed ETFs recorded net inflows of $18 billion in August alone.