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Silver isn’t slowing down — it’s vanishing into the AI and energy revolution. Industrial demand is exploding while global supply tightens.
According to Augusta Precious Metals’ Devlyn Steele, the world is consuming far more silver than it’s producing — and when reality hits, prices won’t move gradually.
They’ll reset.
Watch the video below for Devlyn Steele's latest analysis on the silver shortage:
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The Silent Silver Crisis No One’s Talking About
There’s something big happening in the silver market — and most people, including industry analysts, are missing it.
While experts debate short-term forecasts and chart patterns, the real story has nothing to do with temporary fluctuations. Silver is quietly disappearing into the infrastructure of the modern economy.
Today’s demand is being driven by the very forces shaping the future: artificial intelligence, renewable energy, and high-speed digital infrastructure.
From electric vehicles to solar panels to massive data centers, every emerging technology depends on silver’s unmatched ability to conduct electricity efficiently. Yet the world simply isn’t producing enough to keep up.
Related: Investors Flock to Gold - The Yellow Metal Continues to Hit New Highs
Demand Is Surging While Supply Shrinks
Every electric vehicle on the road contains roughly 25 to 50 grams of silver. With global EV sales expected to exceed 20 million this year, that single sector alone could consume as much as 35 million ounces annually.
Add in solar panels, which require silver for each photovoltaic cell, and the strain becomes obvious: modern progress runs on silver.
But while usage accelerates, mining is slowing. Global production is down by roughly 80 million ounces compared to a decade ago. Because most silver is mined as a by-product of other metals like copper and zinc, any downturn in those industries directly affects silver output.
In other words, we’re using more silver than we’re producing — a simple equation with enormous consequences.
Early Signs of Shortage Are Already Here
The tightening of silver supply isn’t theoretical — it’s already showing up on the ground. Government and private mints have faced delays sourcing enough silver blanks, pushing back production schedules and increasing delivery times. Premiums that once hovered near spot prices are climbing higher as physical supply grows harder to obtain.
In October, the cost to borrow physical silver surged to its highest level since 1980. To stabilize the market, more than 30 million ounces were reportedly flown from the United States and China to London. Those emergency transfers aren’t routine logistics — they’re warning signs.
Related: How to Buy Silver & Gold with Your Retirement Savings
The Price Gap Can’t Last Forever
Despite the clear supply stress, silver continues to trade near its 1980 price range. Meanwhile, the U.S. national debt has soared past $38 trillion, inflation has touched nearly every corner of the economy, and commodity prices have risen across the board. Everything has inflated — except the metal that powers our modern world.
That disconnect can’t last forever. When the global silver deficit, estimated at more than 200 million ounces in 2025, becomes impossible to ignore, prices will have to adjust to reflect reality. Historically, such repricing events happen quickly and decisively — not gradually.
The AI and Energy Revolution Is Accelerating It
The next wave of silver demand isn’t coming from jewelry or coins — it’s coming from data. Artificial intelligence is driving an unprecedented boom in data center construction, with U.S. spending reaching a record $40 billion this year.
Each of these facilities depends on silver for power regulation, circuit boards, cooling systems, and high-speed networking. Silver is also essential to the chips themselves — the brains of AI computing.
2025 won’t be remembered as the year of roads and bridges. It will be the year of bandwidth, data, and electric power — and every one of those systems depends on silver. When a foundational material like this becomes scarce, the ripple effects extend far beyond price charts.
Related: Silver IRA Guide - How to Diversify Your Savings with Silver
The Takeaway for Retirement Savers
For retirement savers and long-term planners, this story carries a simple but urgent message: silver’s role in the global economy is shifting from optional to essential. The metal once viewed mainly as a hedge against inflation is now the backbone of the energy transition and AI revolution.
If demand keeps accelerating while supply continues to fall, silver may be one of the few assets positioned for a true structural revaluation. The question isn’t whether silver will rise — it’s how fast reality will catch up.
Protect Your Retirement Savings
Free Guide Reveals How to Buy Silver & Gold with Your 401(k) or IRA
Supply & Demand
Devlyn Steele’s warning is clear: the world is burning through its silver reserves faster than it can replace them. As energy systems, electric vehicles, and AI infrastructure expand, that imbalance will only deepen.
When the breaking point comes, silver won’t inch higher — it will rewrite the price.