Page 24 - Bullion World Issue 02 Volume 06 February_2026

Bullion World | Volume 6 | Issue 02 | February 2026

SILVER IN

TRANSITION:

SUPPLY DEFICITS,

INDUSTRIAL

DEMAND AND

A NEW PRICE

REGIME

Fundamentals: deficits,
The recent silver webinar industry and policy shocks
captured a rare moment in the From a fundamental standpoint, silver has been in a
market: a once‑in‑a‑generation structural deficit for five to six consecutive years, with
price rally colliding with a annual shortfalls of roughly 150–200 million ounces as
demand consistently outstrips mine and scrap supply.
structural shift in how the Industrial demand, led by clean energy, is the largest
world uses and values silver. incremental driver: solar, EVs, power grids, electronics
The discussion brought and defence together have tightened the market,
together fundamental, while solar alone is now estimated to consume around

technical, industrial and 4,700–5,000 tonnes per year, roughly 10–15% of global
regional perspectives, and silver demand. Policy also matters: the US adding
silver to its critical minerals list and Chinese changes
the common thread was clear: to export licensing (widely misread as an export “ban”)
silver has moved from being a have amplified perceptions of scarcity and helped fuel
secondary precious metal to a the sharp price acceleration since November 2025.
strategic asset at the heart of
clean energy, electronics and Technical picture:

investment portfolios. a powerful but fragile rally
On the technical side, the long-term charts were
interpreted through an Elliott Wave lens, with silver
seen as having completed a major base near 4 dollars
Silver’s new role in a changing world in 2002, rallying to around 50 dollars by 2011–12,
Speakers agreed that the explosive rise in silver prices then correcting to about 11.6 dollars in 2020 – a
in 2025–26 is not a random spike but the result of deep retracement viewed as the end of wave 2. In
overlapping structural and tactical forces. Geopolitical the current cycle, the market is believed to be in
tensions, supply chain vulnerabilities and multi-year a long-term wave 3, with a minor wave 3 topping
supply deficits have combined with central bank easing somewhere in the 94–103 dollar zone before a
and strong gold prices to pull silver into the core of corrective phase towards 66–58 dollars offers a fresh
the safe-haven and diversification trade. At the same long-term buying opportunity. If this structure holds,
time, the metal’s industrial importance has surged, longer-term upside targets in the 196–242 dollar region
making silver critical to the green and digital transitions over the next two to three years were highlighted, with
– especially in solar, EVs, data centres and advanced the caveat that a failure to exceed roughly 105 dollars
electronics. in the near term would make a sizeable correction
more likely.

24