# Silver Price Increase Logic: Industrial Demand vs Investment Attribute



Recently, I saw many people in the community promoting that "Silver is outdated, buying Bitcoin is more cost-effective"—this view is really detached from reality. To be honest, these people simply haven't understood the true driving force behind silver price increases.

Silver is not just a traditional precious metal; it has the strongest electrical conductivity in the periodic table and has long been a core industrial raw material in the electronics supply chain. Looking globally, no other metal can replace silver's role in industrial applications—from chip manufacturing to solar panels, from medical devices to new energy batteries, the demand for silver only increases.

What is the reality? Global silver mining has been in a supply shortage for five consecutive years. Industrial demand is rising year after year, but mining output cannot keep up, resulting in continuous consumption of silver inventories, even straining the strategic reserves of various countries' treasuries.

In this deadlock, the only way out is for prices to find a new equilibrium upward. Higher silver prices can stimulate the economic viability of mining development and also promote demand-side optimization—this is the most basic economic law of supply and demand.

Bitcoin fundamentally cannot solve this problem. It cannot replace silver's industrial attributes, nor can it change the reality of global silver shortages. The value logic of the two is completely different, and they should not be misled by one-sided viewpoints.
BTC0.09%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 5
  • Repost
  • Share
Comment
0/400
zkNoobvip
· 5h ago
When chip shortages occur, it's time to see clearly—silver is definitely not just hype. --- Supply and demand are right there; a price increase is reasonable. --- Stop talking nonsense. Can Bitcoin be equipped with a conductive layer for phones? That's rubbish. --- Industrial demand is the real hard currency; purely speculative assets will cool off sooner or later. --- Do you understand what a substitute is? There isn't one. --- Even the national treasury is eating into its reserves. This is serious. --- Some people only believe narratives and ignore fundamentals. Wake up. --- Five years of shortages and no price increase? Now that's strange. --- In short, it's supply chain bottlenecks; silver needs to go up.
View OriginalReply0
GateUser-beba108dvip
· 5h ago
Silver has actually been underestimated; industrial demand is there, while Bitcoin operates on a different logic. The five-year supply shortage is real—chips and batteries all need it, and there are no substitutes, which is a hard constraint. People talking about being outdated probably haven't thought it through—just-in-time demand is the strongest support. Indeed, shortages push prices upward; it's just Economics 101. There are two paths: one is digital assets, and the other is physical industrial products. It's absurd to have to choose only one. Still daring to bearish when inventories are at rock bottom? That's just ridiculous. Silver's rise is a trend, not hype. It's very important to understand this.
View OriginalReply0
LayerZeroHerovip
· 5h ago
It has been proven that the supply and demand gap is right here; the industrial properties of silver cannot be bypassed at all, and Bitcoin cannot replace it.
View OriginalReply0
DoomCanistervip
· 5h ago
Ha, someone finally said it. The silver shortage has indeed been underestimated; industrial demand is right there. Bitcoin and silver are not even in the same category; too many people are confusing them. A five-year supply shortage; this data is pretty hardcore. This logic is actually basic economics, nothing black magic about it. Really, you can't just focus on the crypto world; the industrial value of silver can't be ignored.
View OriginalReply0
ILCollectorvip
· 5h ago
Selling Bitcoin is not as good as hoarding silver; this is the real essential need. In fact, scarcity is the hard currency; mining output can't keep up with demand and will only get more expensive. Bitcoin is about consensus; silver is about physical laws. I bet physics is more reliable. Supply has been short for five years, hasn't anyone realized this? Isn't this a signal that prices are about to soar? To put it simply, chip manufacturers can't use Bitcoin as a conductor. Some people really need to brush up on industrial knowledge. I just want to ask those who are all-in in the crypto world: will you regret it when silver skyrockets to a sky-high price?
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)