Here’s a summary of the
article in point format:
The Silver Institute released its annual World Silver Survey, conducted by UK-based research firm Metals Focus.
Industrial demand continues to dominate the silver market and is expected to hit another record high this year, rising 9% to 710.9 million ounces.
Demand for silver in Photovoltaic (PV) solar panels is expected to rise 20% to 232 million ounces.
Jewelry fabrication is expected to rise by 4% to 211.3 million ounces and silverware up 7% to 58.8 million ounces.
However, disappointing investment demand is forecasted, with physical bar and coin purchases dropping by 13% to 212 million ounces this year.
Despite investors shying away from the silver market, demand continues to overwhelm supply.
The market is expected to see a deficit of 215.3 million ounces, the second-largest deficit in more than two decades.
Total global silver demand is expected to rise to 1.219 billion ounces, an increase of 2% from last year.
Phillip Newman, Director, and Founding Partner at Metals Focus, said that deficits are starting to matter as above-ground stocks continue to get depleted.
In a world of continuous deficits, higher prices will be needed before stocks are released into the marketplace.
Newman also expects solar demand to continue to grow.
Although investment demand in silver has lagged, causing it to underperform gold, Metals Focus expects that this trend has only started to reverse.
The forecasted 2024 deficit comes as Metals Focus said the deficit in 2023 was 184.3 million ounces.
The silver market has seen a structural deficit for three consecutive years.
Demand last year was driven by industrial applications, which rose to 654.4 million ounces.