Archive · 18 Aug 2026
Silver Demand Slows in Solar as Precious Metals Rally
Silver has become more expensive, so solar companies are trying to use less of it.
Some estimates say solar panels will use 19 percent less silver this year than last year.
Companies are also looking for other materials that work just as well but cost less.
This could reduce the solar industry’s share of silver demand.
Gold, platinum, and palladium prices have also increased.
Gold rose as investors looked for protection from financial and political risks.
Some investors are less confident that the US dollar and US government bonds are completely safe.
Gold does not depend on a government paying back a debt, which makes it attractive to some investors.
However, demand for gold can change quickly if investors find more profitable investments.
Silver prices rose more than 10 percent to their highest level since late June.
Solar manufacturers may use 19 percent less silver in modules this year than last year.
Silver’s share of total silver demand could fall to 14 percent from 18 percent.
Higher silver prices are encouraging manufacturers to reduce usage and seek substitutes.
Gold rose near $4,300 per ounce as investors questioned traditional US safe havens.
- Who
- Solar manufacturers, precious-metals investors, commodity analysts, the Federal Reserve, and the Silver Institute.
- What
- Silver demand from the solar industry is expected to decline as prices rise, while gold demand and prices remain supported by safe-haven concerns.
- When
- Silver, platinum, and palladium rose earlier this month; gold was trading around $4,343 per ounce on August 14.
- Where
- The effects involve global solar and precious-metals markets, with additional concerns linked to the Strait of Hormuz, the Persian Gulf, and US financial markets.
- Why
- Higher silver prices are increasing solar-panel production costs and encouraging substitutes, while doubts about traditional US safe havens are supporting gold demand.
Silver-Demand Decline
Precious-Metals Support
Solar industry outlook
Silver-Demand Decline
Analysts and estimates cited in the article expect solar-panel silver use to decline for a second consecutive year as manufacturers reduce usage and seek cheaper substitutes.
Precious-Metals Support
The solar industry remains a major silver consumer, and the Silver Institute also anticipates a decline rather than the disappearance of photovoltaic-sector demand.
Gold’s appeal
Silver-Demand Decline
Investor demand for gold may be temporary because speculative funds can move toward investments offering higher returns.
Precious-Metals Support
Gold remains attractive because it is not exposed to default risk and may benefit from skepticism about the US dollar and US Treasuries as safe havens.
Interest-rate explanation
Silver-Demand Decline
Gold’s price increase appears larger than the recent change in US interest-rate expectations would normally justify.
Precious-Metals Support
Analysts cited in the article argue that additional factors, including geopolitical uncertainty and doubts about US safe havens, are supporting gold beyond interest-rate expectations.
- Silver price movement
- Silver rose more than 10 percent earlier this month and remains about 65 percent higher than a year ago.
- Solar silver use
- Estimates suggest solar modules will use 19 percent less silver this year than last year.
- Solar demand share
- The solar industry’s share of total silver demand is projected to fall to 14 percent from 18 percent last year.
- Solar production cost
- Silver accounts for more than 17 percent of a solar module’s production costs.
- Gold price
- Gold traded around $4,343 per ounce on August 14, about 7 percent higher than a month earlier.
- Other metals
- Platinum rose 9.5 percent to $1,790 per ounce, while palladium increased more than 10 percent to nearly $1,400 per ounce.
- Silver’s January peak
- Silver reached a reported record high of $120 per ounce at the end of January before falling by roughly half.