Physical gold and silver both retreated on Thursday as traders processed mixed economic signals and adjusted expectations for Federal Reserve monetary policy. Gold spot prices fell to $3,346.75 per ounce, declining $9.14. Silver experienced a sharper decline, dropping to $38.15 per ounce, down $0.37 from the previous session. The pressure on precious metals intensified following the release of U.S. producer price data for July, which posted the largest gain in three years and far exceeded forecasts. This hotter-than-expected inflation reading led investors to slightly scale back expectations for aggressive Federal Reserve rate cuts, with odds for a September reduction slipping from full pricing to approximately 90%. The gold-silver ratio expanded to 87.50 on Thursday, up from 87.14 on Wednesday, reflecting silver’s under performance relative to gold.
Breakthrough Silver Extraction Technology Creates New Market Dynamics
In a significant development that could reshape silver supply dynamics, Lithium Universe Ltd has secured global licensing rights to revolutionary silver extraction technology from Macquarie University. The Jet Electrochemical Silver Extraction (JESE) Technology uses a low-voltage electrochemical process to selectively recover high-purity silver from photovoltaic solar panels while preserving silicon wafers. This breakthrough addresses a critical challenge in the growing solar recycling market, where each panel contains approximately 20 grams of silver worth about $36 at current prices. With global solar waste projections of 60-78 million tonnes by 2050, the potential recoverable silver value exceeds $154 billion.
The technology represents a paradigm shift from conventional recycling methods that typically destroy wafers and require energy-intensive chemical treatments. The JESE process operates at just 2-5 volts using dilute nitric acid, achieving 77% current efficiency while minimizing environmental impact. This innovation comes at a crucial time as silver faces its fifth consecutive year of supply deficit, with 2024 marking a record industrial consumption of 680 million ounces. The solar industry alone consumed 197.6 million ounces in 2024, representing 19% of total global silver demand compared to just 5% in 2014. As renewable energy deployment accelerates globally, this new extraction technology could provide a critical supplementary supply source to help address the structural deficit that has driven silver prices to 14-year highs in 2025.
