Industrial Silver
Also: Technical Silver, Silver Feedstock
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 demand sector on the global silver market by volume. Whereas investors buy silver as a store of value or an inflation hedge, industry consumes silver permanently in 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), surpassing even copper
- Highest thermal conductivity of all metals
- Antimicrobial effect – 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 it cannot be substituted.
The Most Important Fields 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 hard to substitute |
| Medicine | Wound dressings, catheters, implants | antimicrobial effect |
| 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. As renewable energy is expanded worldwide, the silver demand of the solar industry rises year after year – despite progress in material savings per cell (thrifting). According to Silver Institute estimates, the photovoltaic sector alone could claim around 200 million ounces per year by 2030.
Melt Value and Price Determination
Industrial silver is traded predominantly 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 set daily on 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 trend – and thus the long-term influence of industrial demand on the silver price – the historical precious metal prices provide good orientation.
Recycling and the Circular Economy
Part of the industrial silver is recovered (secondary silver): from photo chemicals, electronic scrap, catalysts and dental alloys. The recycling share varies greatly by sector – while up to 90% flows back from photography and chemistry, silver from solar cells or solder joints is economically hard to recover. Globally, recycling covers around 15–20% of total demand.
In Brief
Industrial silver is no niche topic: more than half of global silver demand goes to technical applications, and the trend is rising. Anyone wishing to assess the silver price over the long term should consider industrial demand – particularly from the solar sector and electromobility – as an independent price factor. Note: this entry does not constitute investment or tax advice.