Precious metals

Silver

Half precious, half industrial.

XAG / USD spot$65.14+0.08%

Silver is unique because it lives in two worlds at once: jewellery and investment on one side, electronics and solar on the other. That dual demand makes it more volatile, and more interesting, than gold.

~820 MozMine production, 2026
67 MozMarket deficit, 2026 (6th straight year)
~650 MozIndustrial demand, 2026
1.05 bn ozTotal supply, 2026 (decade high)
The journey of silver

From the ground to the grid, and back.

  1. 01

    From the ground

    Silver rarely comes from a dedicated silver mine. Most of it is a by-product of mining lead, zinc, copper, and gold, which means its supply is tied to metals it has nothing to do with. Mexico leads the world, followed by China, Peru, Bolivia, and Chile. Global mine production sits around 820 million ounces in 2026, but it has barely grown for years. That stagnant supply is the root of silver's structural tightness.

  2. 02

    Into refined metal

    Ore becomes concentrate, then is refined into .999 silver. From this point the same bar is fungible: it can go to a jeweller, an investor, or a solar factory. Purity and chain of custody are everything, which is where assay and verification matter to the refiner.

  3. 03

    Made into things

    Refined silver splits into four very different worlds: jewellery and silverware, bars and coins for investors, photovoltaic paste for solar panels, and the conductive layers inside electronics, EVs, and AI hardware. No other precious metal is pulled this many directions.

  4. 04

    Where the demand is

    Industrial fabrication is the largest pull, around 650 million ounces in 2026, but the mix is shifting. Solar demand is softening as manufacturers thrift and substitute silver, even as installations rise, while data centres, AI, and autos take up the slack. Investment in bars and coins stays strong. This dual precious-and-industrial nature is why silver moves faster than gold in both directions.

  5. 05

    How it is priced

    Silver trades on the same exchanges as gold but with a second engine underneath: industrial demand. The cleanest read of whether it is rich or cheap is the gold/silver ratio, around 65 today. The structural story is the deficit: 2026 is the sixth straight year demand exceeds supply, a gap of roughly 67 million ounces. This is the part Lufroma reads for you every day.

  6. 06

    Back into supply

    Recycling closes the loop. Old jewellery, silverware, and recovered industrial and photovoltaic scrap add to mine supply each year, and that flow grows when prices are high, just as it does in gold.

Silver price, last 90 sessions

The outlook

Silver's industrial half (solar especially) increasingly drives the price, which is why it can lead both rallies and selloffs. The gold/silver ratio is the cleanest read on whether silver is rich or cheap to gold.

What Lufroma tracks for Silver

Spot, the gold/silver ratio, premiums, and sentiment, with industrial-demand context. Read the latest in the daily brief and reports.

See the intelligence

Sources

Sterling and purity are checked by XRF, with lead, zinc, and copper impurity detection in refining. Lufroma reports the market, not the assay.

Other metals: GoldPlatinumPalladium

Lufroma Research. Information only, not investment advice.