Silver has increasingly been described as the “new oil” for tech demand due to its critical role in rapidly growing high-tech industries such as solar power, electric vehicles (EVs), and electronics. This comparison stems from silver’s unique physical and chemical properties that make it indispensable in these sectors, driving a surge in industrial demand that parallels how oil has historically fueled technological and economic growth.
The solar industry is the largest industrial consumer of silver today. Over 85% of silver paste demand comes from solar photovoltaic (PV) panel manufacturing, with the solar sector accounting for about 19% of global silver demand in 2024. This is a dramatic increase from just 5% in 2014, reflecting the explosive growth of solar energy worldwide. Silver’s exceptional electrical conductivity, thermal efficiency, and optical reflectivity make it irreplaceable in solar cells, where silver paste is used to capture electrons generated by sunlight. Each solar cell contains roughly 111 milligrams of silver, and as global solar PV capacity is projected to grow from 1.6 terawatts in 2023 to 5.1 terawatts by 2028, the demand for silver in this sector is expected to remain robust despite efforts to reduce silver content per panel[1].
Electric vehicles represent another major driver of silver demand. EVs use significantly more silver than traditional internal combustion engine vehicles—between 25 to 50 grams per vehicle compared to 15 to 28 grams for conventional cars. With global EV sales projected to reach 20 million units in 2025 and potentially 30 million by 2030, the silver required for EV manufacturing could add hundreds of metric tons of industrial demand annually. This surge in silver consumption is tied to its use in electrical systems and battery connections, where its conductivity and reliability are crucial[1].
Beyond solar and EVs, silver is vital in electronics and electrical manufacturing. It is used in circuit boards, connectors, advanced chips, and other components essential to smartphones, computers, and other devices. Major tech companies such as Apple, Samsung, and Intel face rising costs due to silver’s increasing price, which reflects its growing industrial importance. This trend is mirrored in the EV sector, where manufacturers like Tesla and General Motors must manage higher input costs linked to silver[3][4].
Silver’s role as both a precious metal and an industrial commodity gives it a dual engine of demand. Unlike gold, which is primarily a safe-haven asset, silver’s price is influenced by both investment flows and industrial consumption. This dual nature has helped silver outperform gold in recent months, supported by lower real yields, ongoing monetary easing expectations, and strong industrial demand from sectors like solar, AI, and EVs. The gold-to-silver ratio has been declining, indicating silver’s rising value relative to gold, driven by its industrial applications and safe-haven appeal amid global economic uncertainties[2].
The analogy of silver as the “new oil” is rooted in its essential role in powering the green energy transition and the digital economy. Just as oil was the backbone of the 20th-century industrial and technological revolution, silver is becoming a foundational material for 21st-century technologies. Its unique properties make it difficult to substitute without compromising performance, which means demand is likely to remain strong even as manufacturers seek to optimize usage or recycle silver more efficiently[4].
However, this rising demand also presents challenges. Industries that rely heavily on silver face increased production costs, which can squeeze profit margins or lead to higher prices for end consumers. Solar panel manufacturers, electronics firms, and EV producers are all navigating these cost pressures. Some companies are investing in technologies to reduce silver content or improve recycling, but the metal’s irreplaceability in key applications limits how much substitution is feasible[3][4].
Market dynamics also reflect silver’s growing importance. The silver market is tightening, with rising lease rates and record low inventories on exchanges like Comex. Investor interest has surged, driven by expectations of Federal Reserve rate cuts, geopolitical tensions, and economic uncertainty. These factors have contributed to silver’s price rally, with some analysts forecasting prices approaching $50 per ounce. This price movement underscores silver’s evolving status as both a strategic industrial metal and a financial asset[6][8][9].
In contrast to oil, which is a fuel commodity consumed through combustion, silver is a material input embedded in technology products that enable energy generation, storage, and digital connectivity. This fundamental difference means silver’s demand is tied directly to the expansion of renewable energy infrastructure, electric mobility, and electronics manufacturing rather than energy consumption per se. Nonetheless, the comparison highlights silver’s critical role in enabling the technological advances that define the modern economy.
In summary, silver’s transformation into a key industrial metal for technology demand is well underway. Its indispensable role in solar panels, electric vehicles, and electronics, combined with its unique physical properties and limited substitutes, positions it as a vital resource for the future. While it may not replace oil in the traditional energy sense, silver is becoming a foundational material powering the green and digital revolutions, earning its reputation as the “new oil” for tech demand.