Silver soars past $36, shattering decade-old resistance and igniting a bull run as analysts target $50 as the next major milestone. Meanwhile, exploding demand driven by the UK’s new law requiring solar panels on nearly every new home deepens the global silver crunch, with industrial, military, aerospace, AI, Robotics and battery uses all racing to secure limited supply

Back in the old days (like April of 2025) silver prices had been trading sideways since mid-April, but recent technical indicators suggest a significant silver breakout is now underway as the new month begins.

This upward momentum is partly driven by increased market uncertainty, notably due to

  • unpredictable tariff statements from President Donald Trump. Recall he has been branded as TACO by both GOP and DEM and undecideds.(Trump Always Chickens Out)
  • as well as concerns about US fiscal policy as deficits and interest payments rise, which can boost demand for silver as a safe-haven asset.
  • Hello, this means people are waking up to fact that silver is also a monetary metal.
    • Since 2021, silver demand has consistently exceeded supply, pushing prices up by over 50%. However, the gap between supply and demand is expected to narrow in 2025, with the Silver Institute forecasting a shortage of about 117–118 million ounces, down from 148.9 million ounces in 2024.

    But as we have all learned from this newsletter. The Silver institute is very conservative and has missed 5 key drivers.

    1. Military silver use2. Aerospace silver use3. AI Silver use4. Robotics Silver use5. Silver solid state battery use
    The Silver Institute’s projections of silver supply and demand are based only on traditional industrial, investment, and solar uses—and do not account for military consumption or the latest technological breakthroughs—thus their figures significantly underestimate future silver demand.

    Military demand for silver is increasingly recognized as a major, yet opaque, factor in the market. Government agencies, especially in the United States, have not reported silver inventories since the mid-1990s, and experts suggest that military usage could be up to 15 times greater than any other industry, or even surpass industrial applications like solar panels and electric vehicles. This “hidden” demand is driven by silver’s critical role in advanced defense systems, including drones, autonomous weapons, satellites, radar, nuclear weapons especially where the cooling rods are all silver and other sensitive technologies. With global military spending rising and geopolitical tensions escalating, this demand is likely to grow, further tightening the silver market.

    Meanwhile, new regulatory changes in the UK mandate that nearly all new homes be fitted with solar panels, dramatically increasing silver consumption in the photovoltaic sector. This policy is expected to drive a significant portion of the UK’s new housing stock - potentially 90% of new builds - to include solar, amplifying silver demand for years to come.

    Additionally, Samsung’s new silver solid-state battery technology is poised to have a transformative impact. Each battery cell for electric vehicles may require up to 5 grams of silver, translating to about 1 kilogram per 100 kWh battery pack-equivalent to the silver used in a large solar panel array for a typical home. If just 20% of global vehicle production adopted this technology, annual silver demand for batteries alone could reach 16,000 metric tons-about 64% of current global silver production. Broader adoption could consume the entire world’s silver output.

    Consumer skepticism about the cost, safety, and longevity of lithium-ion batteries is driving interest in alternatives. Samsung’s silver solid-state batteries offer double the range, a 9-minute charge time (versus 25–30 minutes for lithium-ion), and twice the lifespan, making them highly attractive to both automakers and buyers. These performance advantages could accelerate adoption, further straining silver supplies.

    In summary, the Silver Institute’s projections may be overly pessimistic since they fail to account for surging military demand, new solar mandates, and the potential for silver solid-state batteries to dominate the EV market. (Not to mention the boom in AI data centers and robotics)

    The combined effect of these factors could lead to much tighter silver supplies and much higher prices than currently forecast. This aligns with broader market sentiment that silver is poised for a major revaluation, especially given its critical role in both traditional and emerging technologies.
    We are also seeing a return to silver as a monetary metal. India, Russia and China are hoarding Silver and every time western bankers attempt to smash down the price via paper derivative trading the East Buys the Dip.

    Trade tensions and US energy policy could still impact silver demand, especially if conflicts slow global GDP growth or if policies favoring fossil fuels pressure renewable energy sectors that use silver. Despite these risks, ongoing supply shortages are likely to persist in the short and medium term, supporting the case for higher silver prices.

    Decisive Breakout occurred last week, Next line of resistance is around $50

    A decisive breakout above $35 has signaled the start of a bullish trend toward new long-term highs. Buyers are currently defending key support near $35, and given the current technical and macroeconomic backdrop, an upward is likely, extending the demand momentum observed at the start of last week.

    Source

    This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.