Silver Price 2026: Industrial Demand, Solar Boom and Investment Rally

Silver was one of the most dynamic precious metals of 2026: on 29 January 2026, the silver price reached a new high of 121.64 USD per troy ounce — before correcting to currently around 76 USD. In CHF this is approximately 59 CHF per ounce; in EUR around 65 EUR. The drivers are a combination of investment demand and structural growth in industrial demand.

Fundamentals: A Market in Structural Deficit

The Silver Institute documents a market deficit of around 184 million ounces for 2025 — the fourth deficit in succession. Total production from mining and recycling of around 1,050 million ounces no longer covers demand of over 1,230 million ounces. This structural undersupply materialised in the price surge to 121.64 USD in 2026.

The Gold/Silver Ratio: Historical Classification

The gold/silver ratio currently stands at around 60 (4,549 USD gold / 75 USD silver) — near the long-term historical average of 55–65x. When silver hit its 2026 high of 121.64 USD on 13 May and gold was simultaneously around 4,500 USD, the ratio briefly compressed to approximately 51x — a sign that silver outperforms gold in the late upswing. The all-time high for silver stands at 49.51 USD from 2011; the 2026 high of 121.64 USD is therefore a new all-time record.

Solar Revolution: The Decisive Demand Shift

The most important structural driver for silver is solar energy. Photovoltaic modules use silver as an electrical conductor in silver paste electrodes — approximately 15 to 20 milligrams per watt. With worldwide installation of around 500 gigawatts of solar capacity in 2025 alone, this generates a silver demand of 200 to 250 million ounces exclusively for this application. The Silver Institute estimates the solar share of total demand in 2025 at around 18 percent — up from 10 percent in 2020.

Supply-Side Bottlenecks

Around 70 to 75 percent of worldwide silver production arises as a by-product of lead, zinc, copper and gold mining. The supply response to higher silver prices is therefore limited. The largest producers — Mexico, Peru, China — face structural challenges in capacity and regulation.

Investment Demand: ETFs and Physical

Silver ETF holdings have risen significantly since 2024, as investors seek gold-like precious metals exposure at a lower price per ounce. Physical silver demand from DACH private investors remains strong — despite the 8.1% VAT on silver in Switzerland.

Conclusion: Asymmetric Risk/Reward Profile

Silver offers an interesting entry level in 2026 after its correction from 121.64 USD to 75 USD. Structural deficits, solar demand and investment pressure point to long-term catch-up potential. A silver allocation of 15–25% alongside gold can increase portfolio beta to precious metals without undermining the hedging function.