Spot silver pushed above $40 an ounce for the first time in over a decade, extending a rally driven by surging demand from solar panel manufacturers and electronics makers.

The Silver Institute estimates industrial consumption will exceed mine production by roughly 200 million ounces this year, marking a fifth consecutive annual deficit as photovoltaic installations expand across China, India, and the Middle East.

Above-ground inventories in London and Shanghai vaults have thinned noticeably, with lease rates spiking as refiners scramble to secure metal for near-term delivery.

Analysts are divided on how much further the rally can run, with some pointing to $45 as the next technical target while others caution that a slowdown in solar installations could quickly cool the trade.