Executive Summary

• Last year, the price of silver doubled due to growing demand; in the first month of 2026, it has more than tripled and is predicted to rise to over the $100 mark soon.
• There are numerous causes, including the demand for silver components for electric vehicles, solar panels and data centres, as well as rising geopolitical tensions in the world.
• This doesn’t just affect manufacturers and businesses – the price of silverhas impacted large corporations, right down to small and medium businesses who have had to put prices up, which then affects consumers.

The price of silver, a valuable component in electric vehicles, solar panels and data centres, known for its superior electrical and thermal conductivity properties, has surged exponentially over the last year and even more so in the first month of 2026. It is currently at an all-time-high of $95 per ounce as of writing this article. When I started researching this article just two days prior, the price was $93, highlighting the severity of this silver price surge.

Silver is essential to the technology sector that’s driving the global economy, and the demand is only set to accelerate over the next few years as AI rapidly changes the landscape.

Reasons behind the price surge

With AI driving huge growth across the tech industry, it has led to more electric vehicles, solar panels and data centres being constructed – and these all need silver as a component within their infrastructure.

• Solar photovoltaic technology is one of the fastest-growing sectors that needs silver, despite efforts trying to reduce the amount of silver needed in some PV cells.
• Many components in the infrastructure of automotive/electric vehicles need silver to be built; from battery management systems, charging infrastructure, to electrical contacts andpower electronics, thus boosting the demand for silver. On average, electric vehicles consume 67-79% more silver than internal combustion vehicles – that’s a whopping 25-50 grams of silver per vehicle.
• With advancements in cloud computing, storing and managing data, AI adoption in systems and AI-data centres being built, there is a need for more computing hardware and thus, an even greater demand for silver.

Geopolitical factors

Whilst these three sectors in the tech industry drive that demand, there are also several other geopolitical factors at play.

As of January 1st 2026, China enforced new export policies on silver that drastically changed the industry. In a bid to secure their domestic supply amid the alarming rise in demand for silver, the supply deficit is also contributing to the price surge.

China controls around 70% of the world’s silver resources, meaning they hold many of the cards in the world of silver supply and demand, which has implications for the tech industry.

China’s new policy imposes strict licensing on silver exports, with government approval required to export. The qualification threshold requires $30 million in credit lines and 80 tons of annual production capacity – a huge threshold to hit, which most small to medium businesses won’t make, thus turning their business model and livelihood upside down.

Not only this, but with Donald Trump threatening to impose tariffs on eight European countries opposed to his proposed takeover of Greenland, silver and gold prices hit record highs, but also a drop in share prices as geopolitical tensions increased.

Who does this affect and what’s next?

Well, everyone really. From the 44 countries allowed to export silver from China, to the electric vehicle, solar panel and data centre sectors of the technology industry, to the small businesses that need silver to make products, right down to the person who would like to purchase a simple silver necklace.

This silver crisis, characterised by a five-year structural deficit, surging industrial demand and a supply shortage, is set to intensify with some analysts predicting silver reaching $100-$400 per ounce – following that 147% surge in 2025 – and others expecting the crisis to turn volatile.

Industries will have to innovate in this situation, potentially explore other materials that could replace silver, or face a bottleneck in their plans going forward.

Finally, as geopolitical tensions rise significantly in this first month of 2026, the industry waits with bated breath for February to see what happens next in the tariff threats and what this would mean for silver.