Silver Sneak Peaks from Early Production Reports for Q1 2025

• Industrial silver demand reached a record 680.5 million ounces in 2024, marking the fourth consecutive annual record, driven primarily by green energy applications.
• The silver market has experienced four consecutive years of supply deficits, with a cumulative shortfall of 678 million ounces (equivalent to 10 months of global mine supply).
• US-China trade tensions are creating volatility in silver markets, yet silver mining stocks have outperformed the metal itself, rising 37% year-to-date versus silver's 17% gain.
• Green energy transition is a major demand driver, with Topcon solar panels requiring 50% more silver and electric vehicles using 50% more silver than conventional models.
• Despite projected flat industrial demand in 2025, the market is expected to remain in deficit, with potential upside from investment demand if interest rate cuts occur in late 2025.

Industrial applications continue to be the primary growthengine for silver demand, with 2024 setting a new record of 680.5 millionounces (Moz) in industrial usage, according to The Silver Institute. This represents a 4% increase over the previous year, marking the fourth consecutive annual record.

"Silver industrial demand rose 4 percent in 2024 to680.5 million ounces, reaching a new record high for the fourth consecutive year. Demand continued to benefit from structural gains linked to the green economy, including investment in grid infrastructure, vehicle electrification, and photovoltaic (PV) applications," The Silver Institute report stated in its World Silver Survey 2025.

The strong industrial offtake has contributed to a persistent market imbalance, with 2024 marking the fourth consecutive year of deficit:

"Overall, global silver demand exceeded silver supply for the fourth consecutive year. During 2021-2024, the combined deficit reached 678 Moz, equivalent to 10 months of global mine supply in 2024," the Silver Institute added.

US-China Trade War Reshaping Silver Markets

The escalating trade tensions between the United States and China are having profound effects on silver markets. The Trump administration's implementation of significant tariffs, including an 84% tariff on Chinese goods, has created volatility across commodity markets, with silver experiencing sharp price fluctuations.

According to Discovery Alert, silver is uniquely positioned between industrial demand and safe-haven investment dropping from nearly $35 to below $30 post-tariff announcements. Despite this, silver miners outperformed the metal itself rising 37% year-to-date compared to silver's 17% gain.

The Commerce Department's investigations into computer chips, semiconductor equipment, and pharmaceuticals point to additional trade barriers that could further disrupt global supply chains. While President Trump delayed reciprocal tariffs for 90 days for most countries, China remains directly in the crosshairs of the administration's trade policy.

Green Energy Transition Driving Demand

The continued growth in photovoltaic (PV) solar panel production remains one of the most significant factors supporting silver demand. Advanced solar technologies, such as TOPCon (Tunnel Oxide Passivated Contact) panels, require significantly more silver per unit, further intensifying demand. According to the Discovery Alert report, TOPCon solar panels, requiring 50% more silver, drove demand to 200 million ounces in 2024. This trend is expected to continue, with projections suggesting that US solar generation will surpass coal by 2030, requiring 300 million ounces annually.

The electrification of the automotive sector presents another substantial growth area. Electric vehicles use approximately 50% more silver than internal combustion engine models, with this segment projected to consume 90 million ounces by 2030.

Critical Timing for Supply

Silver's persistent supply deficits and growing industrial demand, development-stage companies like Vizsla Silver take on critical importance for the sector's long-term health. Vizsla is advancing one of Mexico's highest-grade undeveloped silver projects in Sinaloa, with impressive resource metrics that position it to potentially become a significant contributor to global silver supply.

"We're a pure play silver company, silver developer, focused on developing our project in Sinaloa in Mexico. It's one of the greatest undeveloped silver projects that certainly I've seen in my career," states Simon Cmrlec, Chief Operating Officer of Vizsla Silver.

The company's flagship project boasts over 360 million ounces of silver equivalent in total resources, with 222 million ounces in the measured and indicated categories. With global silver production increasing by less than 1% in 2024 despite record demand, bringing new mines into production has become increasingly important.

Q1 2025 Silver Production Results

Early reports from major silver producers on their first quarter 2025 production provides insight into the current supply landscape:

 The early Q1 2025 production reports from the silver producers above offer investors valuable insights into current supply trends and company-specific execution, providing a competitive advantage when evaluating the sector before other producers release their results. These initial reports establish important benchmarks against which later announcements will be measured, potentially signaling whether the modest global production growth projected for 2025 remains on track.

The Investment Thesis for Silver

• Persistent Supply-Demand Imbalance: The silver market has recorded four consecutive years of deficit, with 2024 showing a shortfall of 148.9 million ounces. Cumulative deficits from 2021-2024 total 678 million ounces, equivalent to 10 months of global mine production.‍
• Industrial Demand at Record Levels: Industrial applications consumed 680.5 million ounces in 2024, a new all-time high, driven by green energy technologies and AI-related applications.‍
• Green Energy Transition: Solar panel manufacturing continues to drive significant silver consumption, with newer technologies requiring 50% more silver per panel. Electric vehicles use 50% more silver than conventional vehicles.‍
• Potential Monetary Catalyst: With investment demand currently subdued, silver has potential for additional buying pressure if central banks begin cutting interest rates as anticipated in late 2025.‍
• Geopolitical Premium: The escalating trade tensions between the US and China create uncertainty that historically benefits precious metals as safe-haven assets.‍
• Mining Stocks Leverage: Silver mining equities have outperformed the metal itself in 2025, rising 37% year-to-date compared to silver's 17% gain, offering potentially higher returns in a rising price environment.‍
• Production Growth Limited: Global silver mine production increased by less than 1% in 2024, suggesting limited ability for supply to respond quickly to higher prices.

Outlook for the Remainder of 2025

Looking ahead, the Silver Institute forecasts that total silver demand will decline marginally to 1.15 billion ounces in 2025, with industrial fabrication expected to remain flat after several years of record growth. However, the market is still projected to remain in deficit, albeit at a four-year low of 117.6 Moz.

The impact of US tariffs represents a key risk factor for the remainder of the year. As the Silver Institute notes,

"An extended period of elevated tariffs, or a further escalation of global trade wars, could lead to significant supply chain disruptions and sharply lower global GDP growth. These will weigh on industrial, jewelry, and silverware demand, though physical investment could benefit from rising safe-haven purchases."

For investors considering the silver market, the combination of ongoing structural deficits, strong industrial fundamentals, and potential monetary catalysts presents a compelling case. While price volatility is likely to persist due to geopolitical and economic uncertainties, the medium to long-term outlook remains positive based on the fundamental supply-demand imbalance that shows little sign of resolution in the near term.