Silver Surges Past $57 as Solar Demand Drives Historic Supply Deficit

Silver climbed 1.19% to $57.67 per ounce (USD) on Monday, equivalent to $81.65 per ounce in Canadian dollars at a USD/CAD rate of 1.4161. The move outpaced gold’s near-flat session — gold added just 0.05% to $4,183.30/oz — and pushed the gold/silver ratio down to approximately 72.5, its tightest reading in over a decade and a level that silver bulls argue still leaves significant upside for the white metal relative to its monetary cousin.

Industrial Demand Is the Structural Engine

Unlike gold, silver cannot be understood purely as a monetary asset. Roughly 60% of annual silver consumption is industrial, according to the Silver Institute’s most recent World Silver Survey, and the fastest-growing segments are photovoltaic solar cells and electric vehicle battery systems. Global solar panel installations are on pace to require an estimated 232 million ounces of silver in 2026 alone — up nearly 20% from 2024 levels — as next-generation TOPCon and perovskite cell architectures use meaningfully more silver paste per panel than older PERC designs. EV charging infrastructure and onboard electronics add further structural tonnage that simply did not exist five years ago.

The Silver Institute has flagged a projected physical market deficit of approximately 215 million ounces in 2026, which would mark the fifth consecutive year of undersupply. Total mine supply is expected to reach roughly 820 million ounces globally, while total demand — industrial, jewellery, silverware, and investment bars and coins combined — is forecast to exceed 1.03 billion ounces. That gap is being bridged by above-ground inventory drawdowns, and those inventories are not unlimited.

First Majestic Silver: A Canadian Bellwether

For Canadian investors seeking direct equity exposure, First Majestic Silver Corp. (TSX: AG) remains the most-watched pure-play name on the Toronto Stock Exchange. The Vancouver-based miner operates the San Dimas and Santa Elena mines in Mexico and the Jerritt Canyon gold-silver complex in Nevada, giving it production diversification across two countries. First Majestic has historically been sensitive to silver price momentum: the stock carries an approximate silver price leverage ratio of 1.8x — meaning a 1% move in spot silver has tended to translate into roughly a 1.8% move in the share price over trailing 12-month data. With silver up more than 34% year-to-date in USD terms, First Majestic’s equity performance has reflected that leverage through 2026.

Pan American Silver (TSX: PAAS) and MAG Silver (TSX: MAG) round out the Canadian producer landscape. MAG Silver’s 44% stake in the high-grade Juanicipio mine in Zacatecas, Mexico — one of the world’s richest primary silver deposits — gives it among the lowest all-in sustaining costs per ounce in the peer group, a meaningful competitive advantage in any price environment but especially compelling when spot is pressing multi-year highs.

Gold/Silver Ratio: Room to Run?

The gold/silver ratio — currently near 72.5 — is often used as a gauge of relative value between the two metals. Historically, the ratio has averaged closer to 60:1 over the past 30 years, and during periods of peak industrial and investment demand confluence (2011, early 2020s), it has compressed to the low 30s. At 72.5, silver remains statistically cheap relative to gold even after its strong 2026 performance. A reversion toward the 60:1 long-run average, holding gold constant at $4,183/oz, would imply silver at approximately $69.72 USD ($98.74 CAD) per ounce — roughly 21% above current levels. That scenario is not a forecast, but it illustrates the asymmetric upside that technical and macro traders are pricing into the options market, where call open interest at the $65 and $70 strikes has risen sharply through Q3 2026.

The convergence of structurally rising industrial demand, a tightening physical supply picture, and a gold/silver ratio that remains historically elevated creates a compelling macro backdrop for silver in the near term. Canadian investors have multiple TSX-listed vehicles — from large-cap producers like First Majestic and Pan American Silver to developer-stage plays like MAG Silver — to express that view within a domestic portfolio.