Silver price development over the last 10 years – causes and industrial significance

Silver has experienced an impressive rollercoaster ride over the past ten years. From a rather inconspicuous "collateral metal," it has become a strategic raw material for the energy transition, electronics, and investors.

Between 2016 and the beginning of 2026, the price of silver – depending on the currency and period under consideration – roughly doubled or even multiplied several times , and in USD even reached a new all-time high close to the mark of 100 US dollars per ounce .

In this article we will look at:

• how the price of silver has developed over the last 10 years
• which factors drive this development
• why silver is more important for industry today than ever before

1. Overview of silver price trends 2016–2026

2016–2019: Sideways phase with slight upward trends

Between 2016 and 2019, the price of silver mostly fluctuated within a range of roughly $14–$18 per ounce . While there were fluctuations, there was no pronounced bull market – silver traded more or less sideways, while many investors focused more on stocks and technology.

In euro terms, prices during this phase were significantly below €20/ounce; the 10-year low of the last decade was even around €11.17/ounce .

2020–2021: Corona shock and first major price jump

The market began to move with the start of the Corona pandemic in 2020:

• Flight to safe harbors
• massive monetary and fiscal programs
• Disrupted supply chains in mining and transport

The price of silver temporarily jumped above $28-29 per ounce , marking a significant increase. Simultaneously, the ­demand for investment in the form of coins, bars, and ETFs also rose.

2022–2023: Consolidation at a higher level

In 2022 and 2023, silver mostly fluctuated between $20 and $25 . According to long-term overviews, the average annual price in 2023 was in the mid-$20 range.

The drivers were:

• Rising interest rates (put a strain on precious metals)
• at the same time, persistent inflation concerns
• increasing industrial demand, especially from the electronics sector

2024–2025: Trend reversal towards deficits and record prices

From 2024/2025 onwards, the situation worsened:

• Industrial demand reached record levels , especially in the electronics and solar sectors.
• The silver market slipped into a structural supply deficit – demand significantly exceeded supply.

Annual average prices rose sharply; for 2025 they are significantly higher than in previous years and formed the basis for the next jump.

2025–early 2026: New all-time high

At the end of 2025/beginning of 2026, the price literally exploded:

• Silver climbed to new record levels in several surges.
• According to current market data, silver reached an all-time high of around 99 US dollars per ounce in January 2026 .
• At the same time, analyses report a price increase of around 150% in 2025 and further double-digit increases at the beginning of 2026.

Measured in euros, the 10-year high was previously just over €80/ounce , currently silver is even trading above that at around €83–84/ounce .

2. What drives the price of silver? The most important reasons

Silver is a hybrid : on the one hand, a classic precious metal like gold, and on the other hand, a highly sought-after industrial material . The price drivers are correspondingly diverse.

2.1 Macroeconomics: Interest rates, inflation, dollar, crises

Important influencing factors include:

• Interest rates & inflation: Rising inflation and low real interest rates favor silver as a tangible asset and store of value. Conversely, silver often comes under pressure when key interest rates rise sharply.
• US Dollar: Silver is traded in US dollars. If the dollar falls, precious metals become cheaper for buyers from the Eurozone and other currencies – demand increases.
• Geopolitics & Financial Market Crises: Wars, trade conflicts or banking crises often lead to a flight into "hard assets" such as precious metals.

2.2 Supply & Demand: From Surplus to Deficit

For several years, the silver market was relatively balanced. That has changed:

• Since 2021 , the market has been in a persistent supply deficit , meaning that demand exceeds annual supply.
• Reasons include stagnant or declining mine production, limited recycling volumes, and simultaneously increasing industrial demand.

The World Silver Survey indicates a deficit of over 100 million ounces for 2025 – a clear warning signal of continued upward price pressure.

2.3 Investment demand: ETFs, coins, bars

Besides industry, investment demand plays a central role:

• Increasing purchases of silver coins and bars
• Strong inflows into silver ETFs and certificates
• Silver as a "cheaper gold" for private investors

According to market analyses, hundreds of millions of US dollars flowed into silver-linked products within a short period of time during the current rally, which further drove the price up.

2.4 “Pull” through gold and other commodities

Historically, silver has been closely correlated with gold and other raw materials:

• When the price of gold rises, silver often follows with a delay – but with greater volatility.
• Indices such as the CRB index (broad commodity basket) and metals such as copper also show positive correlations with silver.

3. Industrial importance of silver – the underestimated growth engine

Perhaps the most important change of recent years: Silver is no longer just "jewelry and coins". It has become a key raw material for high technology and the energy transition .

3.1 Share of industry in total demand

Current data shows:

• Industrial applications (electronics, solar technology, automotive, etc.) consumed around 680 million ounces of silver in 2024 .
• This represented approximately 59% of total global demand – ten years ago this share was around half.

Silver has thus evolved from a predominantly monetary precious metal to a strategic industrial metal .

3.2 Key industries that need silver

Important areas of application include:

1. Electronics & Electrical Engineering
• Conductive traces, contact surfaces, solder material
• Smartphones, laptops, household appliances, automotive electronics
2. Solar and photovoltaic industry
• Every conventional silicon solar cell contains silver.
• Currently, around 140 million ounces of silver are used annually for photovoltaics – about 15% of global silver demand .
• With the planned massive expansion of photovoltaic systems, this demand is likely to increase significantly further.
3. E-mobility & energy transition
• Control units, sensors, high-voltage components
• Charging infrastructure, inverters and smart grids use silver contacts
4. Medical Technology & Hygiene
• antimicrobial effect (e.g. in wound dressings, coatings)
• Applications in water treatment and air filters
5. Chemistry & Special Applications
• Catalysts, mirror coatings, special alloys

3.3 Why industry can support the price in the long term

Industrial demand has been growing structurally for years – not just cyclically. Key trends:

• global expansion of renewable energies (especially solar)
• Electrification of transport & infrastructure
• further digitalization (5G, IoT, data centers)

At the same time, supply is limited : silver is often a byproduct of other mines (e.g., lead, zinc, copper), so production cannot be increased arbitrarily quickly. The interplay of growing demand and limited supply creates fertile ground for persistently higher price levels.

4. What does this mean for investors and companies?

For investors

• Silver is today both a precious metal and an industrial metal .
• Historically strong price jumps demonstrate the potential – but also the volatility.
• structural deficits and industrial demand can support the price; in the short term, strong fluctuations are normal.

Those who invest in silver should:

• Plan for an investment horizon of several years.
• to broad diversification (precious metals, other asset classes)
• Know the opportunities and risks of each investment type (physical, ETF, mining stocks, derivatives).

For industrial companies

Companies that need silver directly or indirectly (electronics, solar, automotive, medical technology) should:

• procurement strategies (long-term contracts, warehousing, hedging)
• possible substitutions without compromising functionality.
• Consider price risks in calculations and long-term offers.

5. FAQ on silver price trends

Why was silver significantly cheaper in the past than it is today?
Because industrial demand was lower and the market experienced no persistent shortages for a long time. Only with the energy transition, the electronics boom, and stagnant production has the situation fundamentally changed.

Is silver today more of an industrial metal or a precious metal?
Both – but the trend is clearly towards industrial metal : Around 59% of demand now comes from industrial applications.

Can the price of silver rise even further after its record highs?
That depends on interest rates, inflation, the dollar, the geopolitical situation, mine supply, and the future development of the solar and electronics industries. Many analyses see the combination of the structural deficit and the energy transition continuing to provide tailwinds – but of course, this cannot be guaranteed.