Industrial Demand and Supply Constraints Drive Projected Increase
The global silver market is anticipated to face a 17% rise in its deficit, reaching 215.3 million troy ounces in 2024, reports the Silver Institute industry association. This projection stems from a 2% surge in demand fueled by robust industrial consumption, coupled with a 1% decline in total supply.
Silver, essential in various sectors including jewelry, electronics, electric vehicles, and solar panels, enters its fourth consecutive year of a structural market deficit. Despite a 30% decrease last year, the deficit remains significant, providing robust support for silver prices.
Visible silver inventories, along with substantial metal stocks held by individuals and investors, currently shield the market from a potential squeeze. However, the continuous deficits could influence market dynamics in the future, as per Philip Newman, managing director at consultancy Metals Focus.
In 2023, spot silver prices reached a more than three-year high of $29.79 per ounce amidst a gold rally and strong copper prices, showcasing the ongoing strength in the precious metals market.
You might like this article: Future Pak Confirms Proposal to Acquire Vanda Pharmaceuticals
