Watch Silver Demand Grow

01 Oct

Watch Silver Demand Grow

Thanks to vital applications in technology and consumer connectivity, expect industrial silver demand to grow ten percent over the next few years.

That is according to the new report, “Silver and Global Connectivity,” published by the Silver Institute, a trade association. 

From the report: “With the highest electrical conductivity of all metals, silver is a component in almost all electronic devices we use daily. But silver isn’t just vital today; the next generation of technological advancements, especially those related to global connectivity expansion, will rely on the white metal’s inherent properties throughout the 21st century.  As a result, the use of silver in electronics and electrical applications (excluding photovoltaics) is forecast to rise from 224 million ounces in 2020 to 246 million ounces in 2025, reflecting a 10 percent increase, underscoring silver’s role in emerging technologies.”

The Internet of Things – basically physical objects like buildings, machines, wearables, traffic control systems, your home appliances and much more – is growing fast.  The interconnectivity it demands depends on silver in circuit boards.

5G communications networks will be responsible for increased silver usage.  “For example, a network carrier, such as AT&T, Telefónica or Vodafone, will reportedly need at least 400 more transmitters in an area compared to current 4G towers.”

Over the next ten years, the report highlights growing silver demand for radio-frequency identification (RFID) tags, which track and monitor goods and inventory. 

The report also highlights burgeoning silver demand in the automotive industry and aviation industries:

  • “Forty percent of a vehicle’s cost is accounted for by electronics, a substantial increase from historical levels: in 1990 this number was just 15 percent.  Silver is used extensively in electrical contacts throughout vehicles’ electronic systems in switches, relays, connectors, breakers, and fuses. Silver is used in automotive glass to defog and defrost the windows…” 
  • “A rapidly growing subsector of the aviation industry for silver demand growth is unmanned aircraft systems (UAS), commonly referred to as drones. Almost 900,000 recreational and commercial UAS (weighing more than 0.55 pounds or 250 grams) are registered with the FAA as of September 2021. These are finding applications within a wide range of industries including construction, fire monitoring, insurance, utility, and law enforcement. For example, telecoms and aviation industries use drones for beyond-visual line-of-sight capabilities. Drones mapping and surveying, and aiding in visual inspections, currently account for the majority of commercial drone applications….”
  • “Connectivity is critical to the successful deployment of drones in all of these commercial activities for the direct control of the drone itself, for the feedback from the drone of any collected data, and for the monitoring of its payload.”

These applications will provide a rising floor under silver prices in the years ahead.  But as our readers know, it is the world’s awakening to silver as a monetary commodity in the developing financial and monetary crisis that we expect will drive the price of silver to unimagined heights.