Silver price hits all time high of $94.73 an ounce

Silver prices continue to climb, reaching a record high of $94.73 per ounce (oz) yesterday.

For comparison, the average price of silver in 2024 was $28.27 per ounce.

“I think we could soon surpass the $100 threshold,” Philip Newman, managing director of UK-based market research firm Metals Focus, told pv magazine. “When prices are this close, it seems quite likely.”

Geopolitical factors, including rising tensions between Europe and the United States, are major drivers of the sharp upward trend, according to Newman.

“There is a lot of positive sentiment toward gold and silver,” he said. “Uncertainty is increasing due to Trump’s proposed tariffs and potential European retaliation, as well as developments in South America. In addition, indictments involving Federal Reserve Chair Jerome Powell and the ongoing move toward de-dollarization are also supporting precious metals.”

According to Newman, silver prices are unlikely to retreat toward levels seen during the 2022–2025 period, when the average price of the metal ranged between $21.70/oz and $28.50/oz. “We may eventually see prices fall once the current liquidity squeeze eases and uncertainty and investment demand begin to weaken,” he said. “However, this will take time. It will not happen overnight, and I do not expect it in 2026. When prices do come down, they are likely to settle at a significantly higher level than in previous cycles.”

Rising silver prices are putting pressure on the entire PV supply chain, with silver’s share of costs increasing by nearly fourfold in recent months. “We calculate that, at a silver price of around $70/oz, silver would account for at least 18% to 20% of total solar module costs,” Newman said. “With prices approaching the $100 mark, this share will certainly be higher.”

Part of the solar industry may therefore accelerate the transition from silver pastes to copper pastes to reduce manufacturing costs, according to Newman. “I do not think all manufacturers will move to copper,” he said. “However, some are prepared to accept lower efficiency if it allows them to achieve significantly lower production costs. With silver prices above $90/oz, some manufacturers are willing to make that trade-off.”

According to Metals Focus, average silver loadings in the PV industry fell by around 20% in 2024, and a further reduction of more than 15% could have been achieved last year.

In a recent interview with pv magazine, Hanwei Wu, editorial director at OPIS, said solar module manufacturers are struggling to raise prices despite higher production costs linked to rising silver prices.

“It is challenging, if not impossible, to pass on the entire cost increase to end users,” Wu said. “Solar manufacturers have been concerned about rising silver prices since at least 2022, but one key difference this time is the speed of the increase. Silver has been on a near-continuous bull run since last April, rising by more than 180% over the past year.”

However, if silver prices surpass $100 and remain elevated, a silver-driven increase in PV module prices could become unavoidable.

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