Image: Scottsdale Mint, Unsplash
Silver demand for industrial applications is expected to grow 7% year-on-year to reach 700 million ounces (Moz) by 2024, according to year-end estimates from the Silver Institute and consultancy Metals Focus.
The institute said industrial demand growth “is supported by gains from green economy applications, especially in the photovoltaic sector.”
This means that demand in the overall silver industry is expected to increase by 1% annually to 1.21 billion ounces in 2024. This is expected despite an expected decline in silver demand in the photography, jewelry, silverware, net physical investment sectors and net hedging demand sectors.
Meanwhile, the global supply of silver is expected to increase by 2% annually. The Silver Institute said the global silver market is headed for a fourth consecutive year of physical shortage in 2024, around 182 Moz.
“This year’s deficit is little changed from 2023 and remains high by historical standards,” the institute said. “More importantly, Metals Focus predicts that this shortage will persist for the foreseeable future.”
The Silver Institute noted that the price of silver has staged a “remarkable rally” in 2024, rising 29% from the start of the year to November 11. This increase has pushed prices close to $35 for the first time since 2012.
The Silver Institute’s World Silver Survey 2024, published in April, it appears that the average price for silver in 2023 was $23.35 per ounce. Last year, silver demand in the PV industry increased by 64% to 193.5 Moz.
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