Global rearmament is accelerating at a pace few would have imagined just a few years ago. The year 2026 may go down in history for a single number: around $2.7 trillion spent annually on military defense. Not as a finalized total, but as a level the world is already operating at—and likely to sustain or exceed. The pace of growth in military spending in recent years is so strong that we are now talking about historic highs never seen before.
For comparison: roughly a decade ago, around 2016, global military spending stood at approximately $1.6 trillion. That represents a dramatic increase over a relatively short period. And it’s not just about the volume of money. Today’s military systems are far more sophisticated, technologically complex, and heavily dependent on advanced electronics than ever before. In other words, every new dollar spent on defense today creates greater pressure on critical materials than it did ten years ago.
For those who doubt the long-term importance of silver—or who have lost confidence due to its price performance—there is one simple and undeniable fact:
production is not growing. If anything, it is stagnating or declining. In 2016, global silver production was around 885 million ounces. Today, around 2026, estimates range between just 820 and 840 million ounces. This means that despite technological progress, rising demand, and expanding use cases, the world is not able to significantly increase supply.
At first glance, this may seem like a familiar story—security, geopolitics, balance of power. But beneath the surface, a parallel reality is unfolding, largely outside public attention: modern warfare is not just about weapons, but about materials. And these materials are being consumed at a pace with no precedent in modern history. At the same time the public is told that critical resources are scarce and consumption must be reduced, industrial demand for these materials continues to rise. The defense sector is not the only driver—but it is becoming an increasingly significant one.
Modern weapons systems are no longer just about steel. They are technological complexes composed of dozens of elements. Guided missiles can contain up to 18 different critical materials, fighter jets around 15, and naval systems at least 14. Behind each of these systems lies a long chain—mining, processing, manufacturing, logistics. Yet at the end of that chain, there is often no long-term use, but a moment: launch, impact, explosion.
Materials that took years to extract and refine disappear in seconds. This is not a closed cycle. It is one-way consumption.
Among these materials, silver holds a unique position. It does not attract as much attention as lithium or rare earths, but its importance is fundamental. It has the highest electrical conductivity of any metal, excellent thermal conductivity, and high reliability even under extreme conditions. That is precisely why it is irreplaceable in systems that depend on precision, speed, and reliable data transmission.
Silver is present in radar systems, communication infrastructure, guidance electronics, satellite technologies, as well as a wide range of sensors and control units. Without it, today’s “smart” weapons would not function as they do. And because modern military technologies are far more sophisticated than they were a decade ago, their dependence on these properties—and therefore on silver—is significantly greater.
A key point is that the exact level of silver consumption in the defense sector is not publicly known. There are no detailed global statistics that clearly show how much of this metal is actually used by military systems. This is not accidental. Such data is strategically sensitive and closely tied to the technological capabilities of individual nations. Still, based on technological development and production volumes, one conclusion is clear: silver consumption in the defense sector is likely significantly higher today than it was ten years ago—and will continue to rise.
One of the most visible examples of this trend is drones. Not long ago, they were a supplement. Today, they are essential. They are used for reconnaissance, targeting, communication, and direct strikes. And they are produced in large volumes—thousands, tens of thousands, sometimes even hundreds of thousands of units. Each of these systems contains microelectronics, sensors, communication modules, and control systems. Silver is used in all of these components. The amount per unit is small, but in aggregate, it becomes significant—and grows with production scale.
The picture becomes even more complex because silver is not only important for defense. It is also critical to the modern economy and the energy transition—from solar panels to electric vehicles to electrical grids. This means the same metal is essential across multiple fast-growing sectors simultaneously. Pressure on its availability does not come from a single source, but from several parallel directions.
That is why the issue of scarcity is more complex than it is often presented. It is not just about how much material exists, but how it is used—and what priorities determine its allocation. The defense sector is unique in that part of its consumption is one-off and irreversible, further increasing pressure on resources.
It is also important to recognize that this trend is unlikely to disappear even if current conflicts eventually subside. Modern rearmament is driven by deeper forces—technological competition, military modernization, the development of autonomous systems, and the effort to secure access to strategic resources. This means demand for materials, including silver, will continue even outside periods of active conflict.
From a broader perspective, this is not just a question of defense or climate. It is a question of who decides how limited planetary resources are used. If the world is operating at around $2.7 trillion per year in military spending, then the issue is not only how much material exists—but where it is being directed.
And somewhere in the middle of all this stands silver. Unassuming, often overlooked, yet absolutely essential. A metal without which modern technology—civilian or military—could not function. Its true consumption in the defense sector remains hidden, but the trend is clear: as technological complexity increases and production scales up, so does its importance—and the pressure on its availability.
As the physical market continues to grow, the influence of The Gold & Silver Paper Market on price discovery may gradually diminish.
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