Silver Prices Stuck Between Supply Deficit and Solar Industry Shift
Silver prices have stabilized at $58.49 per ounce after a weekly gain of 4.04%, but the market remains trapped between a deepening structural supply deficit and the solar industry's efforts to reduce silver usage in its products.
The Federal Reserve is set to hold rates steady for the fifth consecutive meeting, but the real focus will be on Chairman Kevin Warsh's communication strategy, which may amplify market uncertainty.
The inflation backdrop remains stubborn, with year-over-year CPI reading of 3.5% exceeding the Fed's 2% target for over five years, and oil prices above $100 per barrel adding fresh upward pressure on silver.
The physical market is experiencing a supply deficit of 46 million ounces in 2026, while the solar industry is transitioning to copper-based contacts, reducing silver consumption by 19% this year.