Silver Supply to Ease Global Deficit in 2024

The global silver deficit is anticipated to decrease by 4%, reaching 182Moz in 2024, with a 2% increase in total supply offsetting a 1% rise in demand, according to the Silver Institute. The metal is set to experience its fourth consecutive year of a structural market deficit.

The Silver Institute stressed that despite a 16% decline in physical investment, demand is projected to reach 1.21 billion oz in 2024, driven by industrial demand and a rebound in jewelry consumption. Mine supply is expected to increase by 1%, supported by higher production from Mexico, Chile, and the United States, while recycling is forecast to grow by 5%, driven by an uptick in silverware scrap. Spot silver prices have surged by 32% in 2024, spurred by gold performance and a positive outlook for industrial demand. As a result, exchange-traded products (ETPs) are on track to record their first annual inflows in three years.

“We are witnessing a solid year for total silver demand in 2024, which is forecast to grow by 2%. Industrial fabrication should post another all-time high, rising by 9%, propelled by an anticipated 20% gain in the PV market and a healthy offtake from other industrial segments. Jewelry and silverware fabrication are predicted to rise by 4 and 7%, respectively, while bar and coin demand is forecast to contract by 13%,” said Michael DiRienzo, Executive Director, Silver Institute. 

DiRienzo told MBN that silver has many exciting new demand opportunities beyond its traditional applications and expanding role in the energy transition. He stressed that silver will become an indispensable material as artificial intelligence rises. End uses expected to incorporate silver in AI include transportation, nanotechnology, biotechnology, healthcare, consumer wearables, computing, and energy in data centers.