Silver Edges Down Despite Strong Green Energy and Industrial Demand

Industrial Sector Support

Unlike gold, silver's price is heavily influenced by industrial consumption, which accounts for over half of its demand. The global push for clean energy, particularly in photovoltaic (solar) cells, continues to create a structural supply deficit. This industrial appetite acts as a powerful floor for prices, making silver a favored metal in the energy transition narrative.

Risk-Off Trading

The minor correction is largely attributed to risk-off positioning and profit-taking by short-term traders. As geopolitical tensions eased slightly over the weekend, some of the initial safe-haven premium began to erode. However, the Gold-to-Silver ratio remains favorable for silver on a long-term historical basis.

Market Supply Dynamics

Global silver inventories remain tight. Any minor disruption in mining output, coupled with accelerating industrial demand, could quickly reverse the current negative trend. Analysts expect silver to outperform gold once the current period of consolidation concludes.