Execution of Share Purchase Agreement to Acquire Two Silver Projects in New
During a recent silver-focused webinar, Sprott (TSX:SII,NYSE:SII) founder Eric Sprott, former Hecla Mining (NYSE:HL) CEO Phil Baker and technical analyst Michael Oliver joined host Simon Catt of Arlington Group to unpack what’s driving silver’s sluggish performance, and whether a reversal could be on the horizon.
The panelists explored silver’s shifting applications, the impact of macro forces like Bitcoin speculation and why some investors see today’s dynamics as a potential launchpad for silver’s next big move.
Understanding silver supply and demand
The silver price surged in 2024, rising from around US$22 per ounce at the start of the year to nearly US$35 by the end of October. Since then, silver has largely stayed in the US$30 to US$32 range, briefly breaking US$34 mark in March.
The metal has seen some support in 2025 due to instability in global financial markets caused by US President Donald Trump’s tariffs and the threat of reciprocal import fees against key trading partners.
These foreign policy shifts by the world’s largest economy have created uncertainty for investors who have been increasingly looking to traditional safe havens like silver and gold to de-risk their portfolios.
However, today’s tariff turmoil overshadows a fundamental shift in the silver market over the past several years, which has seen industrial demand growth start to outpace traditional investment demand.
The most notable demand increase has been due to the energy transition and silver’s use in solar panels.
While firms like Goldman Sachs (NYSE:GS) have predicted that industrial demand will wane over the next few years, Catt’s panelists presented different points of view. Sprott said there will be further demand from the electric vehicle (EV) market as producers look to solid-state batteries, which are not only safer, but also quicker to charge.
“I think (solid-state batteries) will bring back EVs to being viewed as economic,” he said. “Plus the whole processing of solar panels and generating electricity more and more inexpensively over time, it’s just going to make the demand for silver continue to rise here when we already have a shortfall,” he told listeners.
Baker pointed out that solar currently makes up 29 percent of silver’s total 1.2 billion ounces of annual demand, and noted that if that were to disappear, it would have a massive impact on the silver market. However, he also said that even if there were a significant policy shift in the US, there would still be considerable demand for solar worldwide.
“Even in the US, the policy really is ‘all of the above’ — all forms of energy. So I’m not concerned about solar cells diminishing. Could they go flat? Yeah, that’s fine. Flat at 300 million ounces? That’s great demand for silver,” he added.
While most solar demand comes from China, the panelists also discussed India’s growing role in the sector. The country…
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