Silver Surges Amid Shift Away from Metal
Silver prices have surged near $67 an ounce, but this rally is different from the one in January when prices hit a record high of $121.64. While retail buyers are driving up demand for coins and bars, manufacturers such as Longi Green Energy Technology and Aiko are trying to reduce their reliance on silver due to its high cost.
Longi has started mass production of base-metal PV cells, which use copper-based metallization to replace conventional silver paste. Aiko has also switched to using copper for interconnection in its all-back-contact modules, reducing silver usage from 5% to 14% of solar module production costs.
The Silver Institute's World Silver Survey 2026 predicts a sixth consecutive annual deficit, with photovoltaic silver demand expected to fall by 19% in 2026. Data centers and AI-related technologies are driving up industrial demand, however, and investors remain optimistic about the metal's prospects.