Knowledge Nugget | Silver in spotlight: What you must know about the precious–industrial metal for UPSC Exam

Key Takeaways:

1. Unlike gold, which is primarily purchased by households and central banks as a store of value and investment, silver actually has inherent physical properties that make it a key component in the manufacture of items, such as batteries and solar panels. These sectors are not only in vogue now but will be crucial to the future of humanity.

2. The “bedrock of demand” for silver also includes artificial intelligence. Silver is also used to make jewellery and coins. That is why buyers and their reasons to purchase silver are more varied than those of gold.

3. The supply of silver is also markedly different from gold. Primarily a byproduct when other minerals are mined, silver’s supply has not moved to match the increase in demand from various quarters, including industry, for several years.

4. More proximate supply-side reasons for the jump in price of silver include the metal’s inclusion in certain ‘lists’. In November, the US added silver to its list of critical minerals. In addition to silver, nine others were added to the list in November, taking the total number to 60.

5. Then there is China’s new rare metals export restrictions covering the next two years that come into force on Thursday. Silver being part of the list has caused concern among its users, with Tesla chief Elon Musk commenting on X on December 27 that “This is not good. Silver is needed in many industrial processes.”

Silver and Its Uses

1. Silver is a soft and lustrous metal that is classified as a noble metal. Its white colour, malleability and resistance to atmospheric oxidation have enhanced its value as a highly desired precious metal which is used in many industrial applications.

2. Apart from its monetary and decorative uses, silver is known to have the highest electrical conductivity amongst all metals that enhances its potential in modern age applications, viz, for printed electric circuits, coating for electronic conductors and in alloys of gold and copper for electrical contacts.

3. Its chloride and iodide are light-sensitive and hence used in photographic material. Silver is typically used (in paste form) on solar cells. Silver is the whitest element and has the highest electrical and thermal conductivity among all the metals.

4. In India, there are no native silver deposits except the small and unique Bharak deposit in Rajasthan. It  occurs generally with lead, zinc, copper (especially their sulphide ore) and gold ores and is extracted as a by-product from electrolysis or chemical methods. It was usually extracted by melting silver-bearing lead ore (ore containing argentiferous galena).

5. According to Indian Minerals Yearbook  2022, Silver is recovered as a co-product as well as a by-product in the country. Silver was recovered in the past as a co-product in gold refining at KGF Complex and Hutti Gold Mines in Karnataka and as a by-product in smelting and refining of lead, zinc and copper concentrates at Chanderiya and Debari smelters in Rajasthan, Tundoo and Moubandar  (Ghatsila) smelters in Jharkhand and at Visakhapatnam smelter in Andhra Pradesh.

BEYOND THE NUGGET: Gold- Properties and India’s Import Dependence

1. Gold in its purest form is a bright, slightly reddish yellow, dense, soft malleable and ductile metal. It is one of the least reactive chemical elements and is solid under standard conditions.

2. Gold often occurs in free elemental (native) form, as nuggets or grains, in rocks, in vein and in alluvial deposits. Gold is resistant to corrosion and to most acid and has unique properties distinct from other metals.

3. Gold is a relatively scarce metal in the world and a scarce commodity in India. The domestic demand is mainly met through imports.

Post Read Question

Which of the following factors have contributed significantly to the recent surge in global silver demand?

1. Artificial Intelligence and smart grid infrastructure

2. Solar energy and battery manufacturing

3. Central bank reserve accumulation

Select the correct answer using the code below:

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 only

(d) 1, 2 and 3

(Sources: Why silver surfed a 160% wave in 2025, Indian Minerals Yearbook 2022 (Part- II : Metals & Alloys)

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