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The Silver Institute and consultancy Metals Focus say global silver demand in 2024 will grow largely due to increasing green economy applications, especially in the photovoltaic sector. The global silver market is expected to show a physical deficit of around 182 million ounces in 2024, marking the fourth consecutive year of deficit.
Demand for silver across all industrial applications is expected to rise 7% year-on-year in 2024, reaching 700 million ounces (Moz, 1 ounce = 28.3495 grams), according to year-end estimates from the Silver Institute and consultancy Metals Focus.
According to the institute, the growth in industrial demand has been "supported by the increase in applications in the green economy, especially in the photovoltaic sector."
This means that industry-wide demand for silver is expected to increase by 1% year-on-year to 1,210 Moz in 2024. This is expected despite an expected decline in silver demand in the photography, jewellery, silverware, net physical investment and net hedging demand sectors.
Meanwhile, global silver supply is expected to rise 2% year-on-year. According to the Silver Institute, the global silver market is heading for a physical deficit in 2024 for the fourth consecutive year, around 182 Moz.
“This year’s deficit is little changed from 2023, and remains elevated by historical standards,” the institute said. “Importantly, Metals Focus expects this deficit to persist for the foreseeable future.”
The Silver Institute noted that the price of silver has seen a “remarkable rebound” in 2024, rising 29% from the beginning of the year through Nov. 11. The surge has seen prices almost touch $35 for the first time since 2012.
The Silver Institutes 2024 World Silver Survey, released in April, shows the average silver price at $23.35 per ounce in 2023. Last year, silver demand in the PV industry increased by 64% to 193.5 Moz. |
