Many people still hold the old mindset, thinking that the price of silver is rising in line with the price of gold. But from my perspective, this price increase for silver is much more structural and sustainable, as it is being revalued as an irreplaceable industrial material, especially in the electronics sector.
Why is silver so important?
1. Fundamental physics: Silver is the metal with the highest electrical and thermal conductivity of all metals, even higher than copper and gold. In high-performance microcircuits, contactors, or critical solder joints, where the lowest latency and highest reliability are required, silver is indispensable. There is no equivalent substitute material at this price point.
2. The thirst of the Energy & AI industry: This is the main reason driving up the price.
• Solar cells: New photovoltaic cell technologies (such as TOPCon or HJT) consume significantly more silver than older technologies. China is producing solar panels at a breakneck pace, and they are accumulating silver globally.
• Electric Vehicles (EVs) & AI Servers: An electric vehicle uses 2-3 times more silver than a gasoline-powered car. New-generation AI server systems also require silver connections to ensure the cleanest signal transmission.
3. Supply Deficit: Unlike gold (mined and stored), industrial silver is very difficult to completely recycle after use. Meanwhile, the world's major silver mines are aging, and production isn't keeping pace with the booming demand from these technologies.
In short, I believe silver is transforming from a "cheap safe haven" asset into a scarce "technological commodity." Investors should look at its industrial cycle rather than just daily candlestick charts.
The silver game now is a game of industrial supply and demand.
