Silver is found in the Earth’s crust at about 0.07 parts per million and is commonly recovered as a byproduct from mining copper, lead, zinc, and gold. In 2021, U.S. silver mine production declined by 5% to 1,020 metric tons (t), with 52% sourced from primary silver ores across four mines, 40% from base-metal ores across thirteen mines, and the rest from gold ores. Primary silver mines include Greens Creek (AK), Lucky Friday (ID), Rochester (NV), and Galena Complex (ID). Globally, silver mine production in 2021 increased by 4% over the previous year to 25,000 t, recovering from pandemic-related disruptions. Mexico led global production with 6,108 t, followed by China and Peru.
Silver enters the U.S. economy through mining, imports, and recycling, and flows into various end uses: industrial applications, coin and medal fabrication, jewelry and silverware, photography, and investment. Key industrial uses include electronics, photovoltaics, chemical catalysts, and soldering/brazing. In 2021, U.S. silver fabrication use reached 4,177 t, with recycling supplying 1,280 t, reflecting the importance of circular resource use.
The application of silver spans across four key categories: industrial, coins and medals, jewelry and silverware, and photography. Each sector capitalizes on specific properties of silver, and the flow of silver through these sectors informs both its recycling potential and long-term demand.
The U.S. silver mining industry experienced decreased output in 2021, falling to 1,020 t due to lower ore grades and labor shortages exacerbated by COVID-19. The Greens Creek Mine alone reported a 12% production reduction, while the Lucky Friday Mine saw a 75% increase due to new mining methods that addressed seismic challenges.
Globally, production rebounded post-pandemic, leading to a rise in silver prices. The daily average Engelhard price rose by 23% to $25.23 per troy ounce in 2021. The peak occurred on February 1 at $29.45, with a yearly low of $21.75 on September 30.
In 2021, U.S. silver consumption for fabrication rose by 10% to 4,177 t as demand in multiple sectors rebounded following the pandemic. Silver is also integral to industrial catalysts, particularly in the production of ethylene oxide and formaldehyde, which are vital for the manufacture of plastics and textiles. Annually, about 4,200 tons of silver are utilized for these catalysts worldwide, with high recovery rates driven by both economic benefits and environmental considerations.
In 2021, U.S. silver consumption for fabrication rose by 10% to 4,177 t as demand in multiple sectors rebounded following the pandemic.
In 2021, the industrial applications segment saw significant growth, totaling 3,723 tons, which marked a 10% increase from 2020. A key driver behind this rise was the electrical and electronics sector, which accounted for 2,103 tons. This growth was largely fueled by the increasing demand for electronic devices, electric vehicles, and photovoltaic components, as silver is essential in applications such as battery connectors, onboard charging systems, circuit boards, and semiconductor components.
Another notable area of expansion was photovoltaics, where demand surged due to a 13% increase in new solar installations globally, reaching a total of 3,536 tons. Additionally, the use of silver in brazing and solders rose by 8% to 202 tons, reflecting heightened activity in the automotive and HVAC industries. However, the catalysts segment encountered a decline, with silver use in ethylene oxide catalysts dropping by 36% from 2020. This decrease was attributed to reduced replacement needs and operational constraints during the pandemic recovery phase.
In the photography sector, the trend of declining silver usage continued, with a total of 560 tons. This decline reflects the ongoing shift from film to digital formats. Although silver-containing X-rays and medical films still contribute to this category, they are experiencing long-term decay. In the realm of jewelry and silverware, consumption increased by 13%, reaching 452 tons. Jewelry alone saw a 15% rise to 411 tons, surpassing pre-pandemic levels, while silverware experienced a 3% growth to 41 tons, spurred by resumed consumer spending and the catching up of delayed purchases.
Lastly, the coins and medals segment experienced a remarkable surge, with demand up 51%, totaling 1,120 tons. This increase was largely driven by investor interest, as demonstrated by the U.S. Mint's sale of 1,110 tons of American Eagle bullion coins in fiscal year 2021, marking a 62% rise. Conversely, sales of the America the Beautiful coin sharply declined due to the discontinuation of the program.
In 2021, global silver recycling rose almost 7% to 5,380 t, an 8-year high. In the U.S., 1,280 t was recovered from industrial and consumer scrap. This resurgence in recycling was partly due to delayed recovery during the pandemic and increased recovery from ethylene oxide catalysts.
The growing use of silver in electronics, EVs, and solar panels, while essential, poses a challenge to recyclability, as these applications often use silver in minimal quantities or dissipate it during use. Despite that, recovery of silver from photography, high-value jewelry, batteries, and certain catalysts remains economically viable.
Silver remains a critical component of the U.S. industrial, consumer, and investment landscape. In a world with increasing demand for energy-efficient materials and secure financial assets, silver’s versatility ensures its continued utility. A strategic understanding of silver’s lifecycle from ore to end use and back through recycling is essential to ensuring sustainable supply and responsible consumption in the modern economy.