From the Money Metals News Service – Peter Krauth joins Mike Maharrey to explain why war-driven volatility hasn’t broken silver’s long-term bull case, citing debt, inflation, industrial demand, and structural deficits….

Silver’s Industrial Role Keeps Getting Bigger

Krauth emphasized that silver is no longer just a monetary metal story. It is increasingly an industrial metal as well. He said that about five years ago, silver demand was roughly 50% industrial, but last year, industrial demand accounted for about 67% of total silver demand. That shift, he argued, makes silver even more tightly connected to the real economy.

That can cut both ways. If economic growth slows, investors may worry that industrial silver consumption will soften. But Krauth argued that some war-related inflation effects could actually support silver demand in key sectors. He gave the example of energy. Higher oil and gasoline prices can push households and businesses to look more seriously at alternatives such as hybrids, EVs, and solar power.

He cited a BBC report on Octopus Energy, the largest utility energy provider in the U.K., which said demand for solar panels had jumped 50% in recent months. Since solar is the single largest industrial use of silver and accounts for about 20% of all silver demand, Krauth said this kind of shift can offset some cyclical weakness elsewhere.

Military Demand Could Be a Bigger Silver Driver Than Many Realize

Maharrey also raised the issue of rearmament. Beyond the current war itself, he noted that countries such as Germany, England, and France are ramping up defense spending as Europe adjusts to the possibility of less U.S. support. That matters because military hardware uses a lot of silver.

Krauth said one estimate suggests a Tomahawk missile contains about 150 grams of silver. Once that logic is extended across tanks, surveillance systems, radar, computers, laptops, and replacement electronics, the silver requirement begins to add up quickly.

He said some of the more reasonable estimates suggest military demand could account for around 5% of annual silver demand. That is not the dominant demand category, but it is far from trivial. In an era of expanding military budgets, Krauth sees that as another tailwind for silver.

The central message was that the short-term volatility in silver should not distract investors from the bigger forces at work. Krauth sees war, debt, refinancing pressure, fiscal weakness, industrial demand growth, military consumption, and ongoing structural deficits all reinforcing the long-term case for silver.

Read More – Source: War Headlines Shook Prices, but the Bigger Silver Story Is Still Intact