How Government War Spending Will Drain the Silver Supply Even Faster

How Government War Spending Will Drain the Silver Supply Even Faster
Photo by SilverWars

While the world argues over inflation and elections, governments are quietly gobbling up silver for the next arms race. You won't see it in headlines, but defense contractors are consuming millions of ounces of silver in drones, missiles, radar systems, and space tech — and none of that metal ever comes back.

Let’s be blunt: war is not just hell — it’s a silver sinkhole.

And with defense budgets at record highs across the U.S., NATO, China, and BRICS nations, the pressure on global silver supply is about to hit a whole new level.

Military Tech Requires High-Purity Silver

Most modern weapon systems can’t function without silver. It’s used for:

  • High-frequency radar systems
  • Infrared night vision and optics
  • Missile guidance circuitry
  • Aerospace connectors and cables
  • Naval and satellite communications
  • EMP shielding and secure transmission modules

Unlike civilian electronics, military-grade components require ultra-pure, high-reliability silver — and in far higher concentrations.

Once it's used in a missile or drone? That metal is destroyed or abandoned on deployment. It’s gone. Forever.

The fuse is lit. Will you be ready when silver takes off? In Silver on the Launch Pad, renowned author James R. Cook teams up with financial insiders to reveal what could be one of the most explosive opportunities in today’s markets—silver.

Defense Spending Is Exploding

Global military spending hit $2.4 trillion in 2024 — the highest in human history.

Country / Bloc2024 Defense BudgetEstimated Silver Use
United States$886 billion58 million oz
China$328 billion40 million oz
NATO (aggregate)$1.2 trillion85 million oz
Russia$112 billion12 million oz
India$81 billion9 million oz

[Source: SIPRI 2024, DoD FY2025 Budget, Silver Institute estimates]

Between missile stockpiles, drone warfare, and next-gen battlefield networks, the military-industrial complex has become a top 5 silver consumer — and it’s climbing.

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New Wars, New Demand

The Ukraine-Russia conflict and tensions over Taiwan have pushed nations into full rearmament mode. This isn’t Cold War posturing — it’s active militarization.

In 2025 alone:

  • The U.S. approved $115 billion in weapons aid to Ukraine and Taiwan
  • NATO accelerated next-gen drone procurement, each loaded with silver sensors and guidance tech
  • Space Force expanded AI-enhanced satellite networks — all silver-intensive
  • BRICS militaries (especially India and China) increased strategic silver purchases through third-party industrial channels

None of this is priced into silver markets.

The Silver Allocation No One Talks About

The U.S. Department of Defense doesn’t report its silver usage directly. But based on procurement records and contractor filings, we know the following:

  • Raytheon, Lockheed Martin, and Northrop Grumman use silver in nearly every guided weapon system
  • The F-35 program alone consumes ~400 oz of silver per jet (electronics, thermal shielding, avionics)
  • DARPA has funded next-gen AI drone swarms with silver-coated photonic processors

This metal isn’t sitting in warehouses. It’s embedded in weapons — or vaporized in live-fire exercises.

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Inventories Can’t Keep Up

With COMEX registered silver down to 35.9 million ounces and global demand set to exceed 1.3 billion ounces in 2025, the math no longer works.

YearMilitary Silver DemandGlobal Silver Deficit
202031 million oz65 million oz
202246 million oz237 million oz
202458 million oz263 million oz
2025 (est.)70+ million oz300+ million oz

[Source: Silver Institute, DoD Budget, SilverWars modeling]

The military is becoming a top driver of the silver shortage. And unlike jewelry or coins, there is no recycling path. You don’t recover silver from a detonated cruise missile.

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The Free Market is a lie. Since 1951, the Mutual Defense Assistance Control Act has granted the US President sweeping tools to direct trade and financial flows in service of national and allied security, and help the super-wealthy move forward with a grand conspiracy.

Schiff’s Take: Silver Is the Real Strategic Reserve

Peter Schiff has long warned that fiat currencies collapse in wartime — and that governments will hoard real assets. What we’re seeing now is that silver is no longer just a monetary hedge or industrial input.

It’s a military asset.

And just like oil in 2003, or semiconductors in 2020, it’s now being prioritized by governments — quietly, systemically, and permanently.

That means:

  • Fewer bars on the open market
  • Higher premiums for retail buyers
  • Scarcity-driven repricing when inventories run dry

The next silver squeeze won’t come from Reddit. It’ll come from the Pentagon.

Inevitable Collapse: What Happens When Silver Runs Out and Copper Takes Its Place?
When silver runs out, AI and crypto collapse into copper: slower, hotter, weaker. No stockpile, no backup. The downgrade is coming—unless we act now to secure strategic silver.

What Comes Next

As geopolitical tensions heat up and silver supply dwindles, watch for:

  • Defense contractors competing with tech firms for industrial-grade silver
  • Strategic stockpile legislation to reintroduce U.S. government silver hoarding
  • Export bans by producing nations to reserve silver for domestic military use
  • COMEX unable to meet delivery on large contracts due to classified military drawdowns

When war meets scarcity, prices don't rise — they explode.


Silver Is The Most Essential

The silver narrative has changed. This is no longer about jewelry, coins, or even solar panels. It’s about missiles, jets, and battlefield networks. It’s about survival in a world that’s rearming at breakneck speed.

You don’t want to be the last one to figure that out.

Read SilverWars.com to stay ahead of the curve. While there’s still silver to buy.