Looking back at recent silver market movements, a quite interesting development continues to unfold. The sharp rise when it hit a record high in late December in the $79 range cannot be explained by mere market fluctuations; there are underlying factors at play.

This increase is supported by rising demand from growth industries such as solar panels, electric vehicles, and AI-related hardware. At the same time, it also serves as a warning signal that the world is facing a depletion of silver, an essential industrial metal.

China accounts for 60-70% of global silver production, and since early 2026, it has introduced new export restrictions. Companies must obtain government licenses to export silver, limited to those with an annual production of over 80 tons and a credit limit of $30 million. This effectively excludes small and medium-sized exporters, rapidly tightening international supply.

According to statistics, global silver supply reaches about 1 billion ounces, but this year's supply shortage is estimated at 115-120 million ounces. Mine production cannot keep up with consumption, and global inventories are rapidly decreasing. While some believe silver will not run out, the decline in physical market liquidity, delivery delays, and rising premiums on bullion indicate that supply tightness is quite severe.

Elon Musk of Tesla also commented, "This is a problem. Silver is indispensable for many industrial processes." EVs use 25-50 grams of silver per vehicle, essential for batteries and electronic components. Solar power generation is similar; without silver, the transition to renewable energy cannot progress.

Among crypto traders, some see the rise in silver prices as an opportunity for Bitcoin investment. There are voices suggesting that "this liquidity will shift to Bitcoin and cryptocurrencies by 2026." However, many dissent, arguing that comparing silver and Bitcoin simply misses the point. Silver is an irreplaceable conductor in industry, and supply shortages are a structural issue. The reality remains that mines have been in five consecutive years of deficit, and vault inventories are at depletion levels.

While some are optimistic that silver will not run out, the market reality suggests that the gap between supply and demand continues to widen. It is worth closely watching how this tightness will impact industries such as EVs, solar power, and semiconductors in the future.