Silver prices across the globe are likely to be higher this year as demand for this precious metal continues to grow backed by macroeconomic and geopolitical conditions, says The Silver Institute. According to the industry association while there will be increased demand for silver as an industrial metal, the industry would need to brace itself for some unforeseen circumstances such as the current coronavirus crisis in China.

As for the demand for silver in the solar PV industry, the analysts offer a mixed forecast. With governments supporting renewables to tackle climate change, and PV continuing to witness a fall in prices, solar PV deployment is likely to expand further.

Yet, technological changes in the design of solar cells could offset actual silver consumption as the industry seeks out more ways to create panels with less silver. Due to this, the institute expects silver demand in the PV sector to edge slightly lower, but the total will remain close to record highs, the analysts argue.

In September 2019, Farunhofer ISE along with its industry partners claimed to have created a technique of fine-line metallization screens to create contact fingers that bring down silver use in the production of silicon solar cells by 30% with an aim to reduce manufacturing costs (see 30% Less Silver For Silicon PV Cells: Fraunhofer ISE).

Back in 2018, demand for silver actually contracted 3% while the institute had foreseen a 7% YoY increase in silver’s average price in 2019 riding on the global need for more renewables and a regulatory push for solar PV.

Now, it says the year 2019 boosted average annual silver price to its first increase in four years by 4% to $16.21 per ounce and in 2020 the annual average price for silver is expected to rise by 13% to a 6-year high of $18.40 per ounce.

Detailed analysis of the silver industry and demand will be published by the institute in its 30th annual report to be released on April 15, 2020.

Silver Demand From Solar Could Slightly Drop In 2020