For the first time in history, silver has emerged both as a financial safe haven and an essential industrial commodity. Over the last six years, global supply has failed to keep pace with steadily growing industrial demand. The rise of solar energy, electric vehicles, 5G, and artificial intelligence data centers has radically reshaped silver’s usage profile. Trading at $26 per ounce in 2024, silver reached an all-time high of $121.64 on January 29, 2026.
Soaring industrial and green energy demand for silver
In recent years, silver’s role in renewable energy, automotive applications, and data centers has driven global demand to record levels. With unparalleled electrical conductivity among metals, silver is indispensable wherever top performance is required. In 2024 alone, photovoltaic panels consumed 197.6 million ounces of silver, accounting for 17% of total annual demand. Electric vehicles incorporate 67–79% more silver per unit than traditional vehicles.
Demand is also accelerating in AI data centers and 5G infrastructure. While the precise industrial impact of silver used in server motherboards is still undetermined, the expanding global investments by major technology firms continually fuel further demand. A comprehensive report by the Silver Institute and Oxford Economics emphasized that silver will play a crucial role in the green energy transition and digital transformation over the coming decade.
Supply deficit and price movements
For six consecutive years since 2011, silver production has fallen short of demand. The deficit is projected at 40.3 million ounces in 2025 and is expected to widen to 46.3 million ounces in 2026. In that period, about 762 million ounces have been drawn from above-ground stocks—roughly equivalent to 10 months of mining output. While mine supply has edged up slightly, it still lags behind surging demand.
After starting 2024 at $26 per ounce, silver closed out 2025 at $72 and surged as high as $121.64 in early 2026. The current price hovers around $75 per ounce. The 42% price jump in 2025 marked silver’s strongest performance since 1979. Surveys by Reuters and LBMA indicate that analysts expect an average price of $79.57 to $81 per ounce in 2026. Major banks such as J.P. Morgan, Bank of America, and Goldman Sachs have published 2026 price targets ranging between $81 and $135.
Metals Focus executive Philip Newman highlighted that “the era of virtually unlimited silver liquidity is over.” His firm forecasts that market tightness in silver will be irregular but lasting, with reduced liquidity and sharper price swings compared to the past.
Physical silver: storage and cost barriers
Owning physical silver poses significant logistical challenges. At a price of around $73 per ounce, acquiring $100,000 in physical silver means handling and storing 41 kilograms, compared to just 700 grams for the same value in gold. Vault storage fees and insurance costs can substantially erode annual returns. Even reputable institutions such as BullionVault and Perth Mint charge storage rates for silver that are two to four times higher than those for gold. These hurdles remain major deterrents for long-term investors.
Tokenization: a new era for silver investment
The tokenized commodity market has grown to exceed $7.3 billion in recent years. Blockchain-based silver tokens allow investors to sidestep the burdens of physical transport and storage while gaining transparent ownership. Custody, insurance, and transfer for tokenized assets are integrated within the product, enabling investors to move positions freely on-chain and actively manage their holdings.
Tokenized silver can also be used as collateral or in DeFi operations. According to McKinsey’s June 2024 report, tokenization of real assets could reach $2–4 trillion by 2030. Blockchains are effectively eliminating traditional storage constraints for silver and supporting strong future growth prospects in this area.
New Zealand-based Techemynt Limited launched SilverNZ and GoldNZ tokens in 2026. As a financial services provider with over 15 years of blockchain experience, the company offers SilverNZ tokens backed by physically segregated bullion secured by Commonwealth Vault, ensuring complete independence and security. The New Zealand legal framework and tax benefits provide additional advantages. SilverNZ tokens are accessible on Ethereum, Polygon, and Base networks, all under the same contract address.
