Industrial Silver
Also: Technical silver, Silver raw material
Industrial silver refers to silver used as a raw material in technical and industrial applications, as opposed to investment or jewellery silver.
Industrial silver is the largest single demand sector on the global silver market by volume. While investors buy silver as a store of value or inflation protection, industry consumes silver permanently within products - a large part of which cannot be economically recovered. This structural consumption demand makes industrial silver an independent price driver that acts irrespective of investor sentiment.
Properties that make silver industrially indispensable
Silver possesses a combination of physical properties that no other metal can fully replicate:
- Highest electrical conductivity of all known metals (63 MS/m), even surpassing copper
- Highest thermal conductivity of all metals
- Antimicrobial action - effective against bacteria, viruses and fungi without developing resistance
- High reflectivity in the visible and infrared light spectrum (> 95%)
- Chemical resistance to many alkalis and weak acids (although it dissolves in nitric acid and hot sulphuric acid)
Compared with copper - the next-cheapest conductor - silver is more expensive but, in many high-performance applications, cannot be substituted.
The main areas of application
| Sector | Application | Characteristic |
|---|---|---|
| Photovoltaics | Silver paste for solar cell contacts | largest single consumer, growing strongly |
| Electronics | Conductor tracks, contacts, solders | high purity requirement (>= 999) |
| Electromobility | Battery management, switches, sensors | growth driver from 2025+ |
| Chemistry | Catalysts (e.g. ethylene oxide synthesis) | silver hardly substitutable |
| Medicine | Wound dressings, catheters, implants | antimicrobial action |
| Photography | Silver halides (X-ray, professional photo) | declining but still relevant |
| Mirrors / optics | Coatings, telescope mirrors | high reflectivity |
Photovoltaics as the dominant driver
The solar sector has become the most important industrial consumer since 2010. Every solar cell contains silver paste to contact the silicon wafers. With the global expansion of renewable energies, the silver demand of the solar industry rises year after year - despite advances in material savings per cell (thrifting). According to Silver Institute estimates, the photovoltaic sector alone could require around 200 million ounces annually by 2030.
Melt value and price determination
Industrial silver is mostly traded as fine silver (999/1000) - in the form of LBMA-certified Good Delivery bars (1,000 oz), granules or powder. The price is based on the current spot price, which is determined daily on the COMEX in New York and via the LBMA fixing in London. Anyone wishing to calculate the melt value of silver objects can use the melt value calculator.
For the historical price development - and thus the long-term influence of industrial demand on the silver price - the historical precious metal prices offer good orientation.
Recycling and the circular economy
Part of the industrial silver is recovered (secondary silver): from photochemicals, electronic scrap, catalysts and dental alloys. The recycling rate varies greatly by sector - while up to 90% flows back from photography and chemistry, silver from solar cells or solder joints is barely economically recoverable. Globally, recycling covers around 15-20% of total demand.
Key takeaway
Industrial silver is no niche topic: more than half of global silver demand goes to technical applications, and the trend is upward. Anyone wishing to assess the silver price over the long term should take industrial demand - especially from the solar sector and electromobility - into account as an independent price factor. Note: this entry does not constitute investment or tax advice.