Silver Shortage Shock – What Can Entrepreneurs Learn?

So, we’ve been saying for months now that entrepreneurs should consider silver and gold, and finally, it happened.

After nearly a year of gains, silver touched historical all-time highs of over $80 an ounce.

Silver is up over 150% and gold is up 60% since January 2025.

China has laid down restrictions on silver exports starting January 1 2026.

In addition, a shock strike by U.S. President Trump on Venezuela in order to capture sitting president Nicolas Maduro throws even more uncertainty into the mix.

What does it all mean for entrepreneurs? In this article, we look at just that.

Here goes…

Silver is in Short Supply

Silver in Short Supply

Put simply, silver is in genuine short supply.

Silver Deficits: For the fifth year in a row, demand in silver has exceeded supply. Supply in 2025 is estimated at around 1 billion ounces. While consumption was around 1.24 billion ounces. There is simply not enough silver to go around.

Industry: Silver is used heavily in industry; tech industries are heavily reliant on silver. Solar panels, energy-efficient batteries, semiconductors and medical devices all rely on silver.

The drive in electric vehicles (EVs) has seen an increase in the demand for silver, with each EV requiring 25-50 grams per car.

Limited Production: Silver is a by-product of other metals such as copper, zinc and lead mining, which means the output for silver cannot easily be increased overnight.

Declining Physical Stockpiles: Silver stockpiles in major trading hubs have seen reductions of roughly 70% (COMEX).

Read these articles on why entrepreneurs should consider silver, gold and Bitcoin:

Price Action

Silver Price Action

The price action is more than just scarcity. The current economic climate has added additional fuel to the price surge.

Inflation Concerns: With inflation concerns growing and a reduction in the buying power of global currencies, many are looking at precious metals as a safe haven to protect their wealth.

ETFs: Demand for silver-backed exchange-traded funds has caused demand for the physical silver backing these instruments.

Unfortunately, the ratio of paper silver to actual physical supply is estimated to be between 250:1 and 400:1.

Meaning that for every ounce of physical silver, there are potentially 250-400 claims vying for it.

China Restricts Exports

China Silver Restrictions

In addition to the already volatile mix, China has announced export restrictions for all its silver exporters.

From 1 January 2026, China will introduce new export licensing requirements for silver, replacing previously more liberal export practices.

Under this new system:

  • Exporters must obtain government-issued licences approved by Chinese authorities.
  • Licences are expected to be granted primarily to large, state-sanctioned firms meeting strict production and financial criteria.
  • Smaller and mid-sized exporters may be effectively excluded from exporting to foreign markets.

It is estimated that China accounts for roughly 60-65 % of global processed silver availability.

Does China Matter?

While China is not the largest silver miner (Mexico is), it does control a large proportion of refining and processing capacity.

So, China does have significant influence on the delivery of physical silver worldwide.

Top Silver Suppliers 2025

What Can Entrepreneurs Learn?

Silver Price – What Can Entrepreneurs Learn?

Final thoughts

Silver Price Rise

Entrepreneurs should take note that the dramatic price increase in physical silver seen over the last year or so is likely to continue.

Silver is in genuine short supply, and coupled with the increased industrial demand and restrictions brought in by China, should all add significant fuel to the fire.

However, entrepreneurs should be very careful. The market has already seen huge gains in silver over the past year, and reversals should be expected.

The market moving forward is likely to be extremely volatile with potential large falls and subsequent increases in price action.

Physical silver is likely to be the best option, as ETFs or ‘paper silver’ are heavily leveraged at 250:1- 400:1.

As always, savvy entrepreneurs should avoid going “all-in” on this latest trend, and you should only consider investing what you can afford to lose.

Good luck!

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***Disclaimer: This article is not financial or legal advice and is given for informational and entertainment purposes only. Readers should conduct their own research and not invest more than they can afford to lose. Crypto is extremely volatile, and as such can drop in value considerably without notice. Pop Up World has a global presence and is not specifically targeting any jurisdiction with its content. Any crypto references are not intended for UK businesses or consumers. You should always seek legal advice to understand if the use or investment in crypto is allowed in your jurisdiction.

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