Silver Surges Past $64 as Solar Demand Tightens Global Supply Deficit

Silver hit $64.14 per troy ounce (USD) on Monday, August 10, 2026 — equivalent to $89.86 CAD at the prevailing USD/CAD rate of 1.4010 — rising 1.28% on the session and outpacing gold’s 1.14% gain. The move pushed silver to its highest level since the industrial metals rally of late 2025, reigniting debate about whether the grey metal’s structural story is finally being priced in by mainstream investors.

The Gold/Silver Ratio: Still Historically Wide

Despite silver’s strong session, the gold/silver ratio sits at approximately 68.4 — calculated against gold’s concurrent price of $4,390.30/oz. Historically, the ratio has averaged closer to 55–60 during periods of synchronized industrial and monetary demand. A reversion toward that long-run mean would imply silver prices north of $75/oz USD, even without gold advancing further. For Canadian retail investors holding silver ETFs or miners, that gap represents a potentially significant re-rating catalyst.

Solar and EVs Are Consuming Silver at a Record Pace

According to the Silver Institute’s 2026 World Silver Survey, global industrial silver demand is on pace to exceed 680 million ounces this year — a new annual record — driven primarily by photovoltaic (PV) cell manufacturing and electric vehicle power systems. Each new-generation TOPCon solar cell requires roughly 20% more silver per unit than the previous PERC standard, a structural shift that manufacturers have been unable to engineer around. EV charging infrastructure and onboard electronics add further pressure, with the auto sector alone projected to consume over 90 million ounces in 2026.

On the supply side, global mine output is projected to reach approximately 820 million ounces in 2026 — insufficient to meet combined industrial, jewellery, and investment demand estimated above 1.1 billion ounces when above-ground restocking is included. The result is a physical market deficit forecast near 265 million ounces, the fifth consecutive year of undersupply. Above-ground inventories held at the LBMA and COMEX have declined materially, adding urgency to the supply conversation.

First Majestic Silver: A Canadian Proxy for the Trade

First Majestic Silver Corp. (TSX: FR), Canada’s largest pure-play silver producer, operates three producing mines in Mexico and one in Nevada, with a combined silver-equivalent output target of over 32 million ounces for fiscal 2026. The company has historically traded at a premium to net asset value during silver bull runs, making it a high-beta vehicle for investors seeking leveraged exposure to spot prices. With roughly 65% of its revenue tied directly to silver (versus gold byproduct credits), FR’s earnings are acutely sensitive to price moves at the $64/oz level — a dollar increase in spot silver translates to approximately $30–35 million CAD in incremental annual revenue at current production rates.

Fellow Canadian producers Pan American Silver (TSX: PAAS) and MAG Silver (TSX: MAG) — the latter holding a 44% stake in the high-grade Juanicipio mine in Zacatecas, Mexico — also stand to benefit materially. Juanicipio in particular, with grades averaging over 400 grams per tonne silver-equivalent, positions MAG Silver as one of the highest-margin silver developers in the Western Hemisphere.

Key Price Levels to Watch

Technical traders are watching the $65.00 USD resistance level closely — a clean weekly close above that mark would represent a breakout from a multi-month consolidation range and could attract momentum-driven capital. On the downside, $61.50 has held as support through three prior pullbacks in 2026. With industrial demand accelerating, the deficit widening, and the gold/silver ratio still historically stretched, the fundamental case for silver appears more compelling than at any point since the 2020–2021 rally.