Silver at $75: Is This the Dawn of a New Precious Metal Paradigm?

The price of silver has surged to unprecedented levels in 2025, with the metal hitting $75 per troy ounce in late November, driven by a confluence of structural shifts in global industrial demand and monetary systems. This milestone raises a critical question: Is this the dawn of a new paradigm for silver, where its dual role as both an industrial and monetary asset reshapes its valuation and strategic importance?

Industrial Demand Dynamics: The Green Energy and Tech Revolution

Silver's industrial demand has become a linchpin of the global green energy and technological transition. As stated by the Silver Institute, 29% of silver's industrial demand in 2024 was already tied to the solar sector, with this share projected to grow as countries like the European Union push for ambitious solar capacity targets by 2030. The metal's unparalleled electrical and thermal conductivity make it indispensable in photovoltaic panels, where a single 1-megawatt solar array requires approximately 1,200 kilograms of silver according to the Silver Institute.

Electric vehicles (EVs) are another major driver. According to Blackwell Global, EVs use significantly more silver than traditional vehicles, with demand concentrated in battery systems, power electronics, and charging infrastructure. Meanwhile, the rapid expansion of AI and data centers is amplifying silver's role in circuitry and electrical components, as research shows these sectors require advanced computing hardware to meet surging global demand.

This industrial demand is occurring amid a tightening supply chain. Mine production has declined by 1.4% annually since 2016, while industrial demand is projected to grow by 3% in 2025. The resulting supply deficit-820 million ounces over five years-has pushed prices to record highs, with Bank of America raising its 12-month target to $65 per ounce.

Monetary System Shifts: Central Banks and the Revaluation of Silver

Beyond industrial demand, structural shifts in global monetary systems are redefining silver's role. Central banks, particularly in emerging economies, are increasingly purchasing silver as a strategic reserve asset. A report by Discovery Alert notes that China, India, and Poland have intensified their silver acquisitions to diversify reserves and reduce reliance on the U.S. dollar. This trend reflects a broader "debasement trade," as analysts point out where investors seek to preserve value amid rising sovereign debt levels and geopolitical tensions.

The interplay between silver's industrial and monetary attributes is particularly notable. While approximately 60% of its demand remains industrial, the growing supply deficit and strategic accumulation by central banks are elevating its status as a dual-purpose asset. The London Bullion Market Association's silver vaults, nearly emptied over the years, exacerbate this scarcity, further tightening the supply-demand balance.

Central banks are also exploring the development of a next-generation monetary system, including tokenized reserves and CBDCs, which could enhance the role of physical commodities like silver in global finance. Meanwhile, discussions about a potential global currency reset-driven by concerns over fiat currency instability-are amplifying interest in alternative assets such as silver.

The Gold-Silver Ratio and Market Imbalance

The gold-silver ratio, currently near 79:1, remains historically high, indicating that silver is undervalued relative to gold. This imbalance suggests further upward potential for silver as it gains recognition as both an industrial and monetary asset. The U.S. inclusion of silver in its Critical Minerals List in 2025 has further underscored its strategic importance, adding a layer of macroeconomic support.

Conclusion: A New Precious Metal Paradigm?

The convergence of industrial demand from the green energy transition and structural shifts in global monetary systems positions silver as a unique asset class. With prices surpassing $75 per ounce, the metal is no longer merely a commodity tied to manufacturing cycles but a strategic reserve asset in a reconfiguring global financial landscape. As supply constraints persist and central banks continue to diversify their reserves, silver's dual role may catalyze a paradigm shift in how the market values and utilizes this ancient metal.

For investors, the question is no longer whether silver can reach $75-it has-but whether this milestone marks the beginning of a sustained revaluation driven by forces far beyond traditional market dynamics.