Robin Bhar, an independent metals analyst, spoke to CGTN Europe about the surge in silver demand and prices. He explained that the sharp rise is largely driven by silver’s growing industrial use, particularly in the green energy transition. This trend is evident worldwide, with especially strong demand in countries such as India, China, and across Southeast Asia. A global shortage of silver has further tightened supply, pushing prices higher. Silver plays a crucial role in the energy transition, and its significance in industrial applications places it alongside metals like copper and tin in both strength and utility.
00:00Robin Barr is an independent metals analyst. He says silver's boom is down to its integral status in so many industries.
00:08As well as the more traditional drivers of silver, which are the same as for gold, silver has more of an industrial component.
00:21It's driven by usage in solar panels, in industrial applications.
00:27That's coming to the fore, particularly with the green energy transition.
00:33Silver is a vital component of the energy transition, so it's also booming because of this additional demand coming through.
00:45Why is India so important in this story?
00:48India has had a long cultural tradition of being active in silver.
00:58Think of the silverware, the silver teapots and jewellery that are centuries old.
01:04So India has a long affinity, probably longer affinity with silver than with gold.
01:12So it's part of the natural psyche, if you like, of the country.
01:18But supply does seem to be a constant issue.
01:22So what's happening in the vaults where all that silver bullion is usually stored?
01:27Physical demand is robust, very strong, and therefore silver is being drained from inventory,
01:36including that being held in the vaults to feed this physical demand.
01:42There's a shortage in London, in the London vaults, where the majority of the silver bars are stored.
01:52And that is causing the silver supply to tighten immensely.
02:00And supply and demand drive commodity prices.
02:05If demand is high and supply is falling short, then the consequence is to have higher and rising prices.
02:17We've talked a little bit about India, but what about other markets that feed into the whole silver ecosystem?
02:23I'm thinking China, I'm thinking the United States.
02:25You've already mentioned the UK.
02:27What's going on?
02:28Very strong demand, what we're seeing in one countries being replicated, particularly in countries that have a strong industrial base.
02:40And China comes to mind.
02:42Southeast Asia, Korea, Taiwan, these countries come to mind.
02:47Because they're manufacturing, fabricating industrial products, and they contain silver, which is an important component in these products.
03:00So it's a worldwide trend, and we're seeing it happening all over the globe.
03:10And this is why it could be different this time, in that silver could go considerably higher than we've seen in previous upcycles.
03:22It's interesting, the way you're talking about silver.
03:24It's like it straddles precious metals and industrial metals.
03:29So I wonder what your outlook is for silver compared to other metals.
03:34Very strong.
03:35I would put silver in with copper and perhaps tin.
03:41These are indispensable to the energy transition.
03:46If we are, as a world, to decarbonise, move away from fossil fuels, then we need metals like silver and copper and others to enable that transition.
04:00So it's vital.
04:02Without silver, we don't have an energy transition.
04:05We don't have the solar panels.
04:08We don't have the renewable energy that's needed to decarbonise the world.
04:14So it cannot, its strength and its usage cannot be understated.
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