Why Silver Price Is So High

Here are the major upward pressures:

1. Industrial Demand Surge
   • About 50-plus % of silver demand comes from industrial uses — especially in solar panels, electronics, and electric vehicles. Business Standard+2ETBFSI.com+2
   • For example: the solar-energy boom is driving big increases in silver demand for photovoltaic (PV) manufacturing. Wall Street Journal
   • Because of that dual role (industrial + precious metal) silver is benefiting from both investment demand and real-use demand. Money Metals+1
2. Supply Constraints / Deficit
   • Silver is often mined as a by-product of other metals (e.g., copper, lead, zinc). This means supply doesn't always expand quickly with price. Wikipedia+1
   • Analysts report a structural supply deficit for several years, which supports higher prices. ETBFSI.com+1
3. Macro / Monetary / Safe-Haven Factors
   • A weaker US dollar makes silver (and other commodities) more attractive globally. ETBFSI.com+1
   • Expectations of lower interest rates reduce the “opportunity cost” of holding non-yielding metals like silver. Forbes+1
   • Geopolitical risk, inflation fears, and market uncertainty drive investment into precious metals. Kitco+1
4. Ratio / Relative Value Argument
   • The gold/silver ratio (how many units of silver equal one unit of gold) is high, which some investors interpret as silver being “undervalued” relative to gold — hence they buy silver anticipating it will catch up. Business Standard
   • When silver has under-performed for a period, some investors move to pick up the “cheaper” precious metal. Money Metals

 Risks & What to Watch

Even with strong drivers, there are caveats:

• Because silver has heavy industrial use, if global manufacturing slows (due to recession, supply-chain issues), demand could weaken. The Economic Times
• The supply side might respond to high prices (in time) by increasing production or recycling, which could dampen future price increases. The Financial Express
• For investment purposes, silver is more volatile than gold — partly because its market is smaller and mixes industrial and investment demand. Wikipedia
• If key macro conditions change (e.g., USD strengthens, inflation falls, interest rates rise) the boost from safe-haven demand may decline.

 Bottom Line

Silver is expensive because multiple strong forces are acting at once: industrial demand (especially for clean energy tech), structural supply constraints, and favorable macro conditions (weak dollar, rate outlook, safe-haven flows).
But its dual nature (industrial + precious metal) means the upside is large — and so is the risk. If the economy turns, or the industrial demand drops, silver may correct more sharply than assets with purely investment demand.