Higher silver supply to reduce global deficit by 4% in 2024
The global silver deficit is expected to fall by 4% to 182 million ounces in 2024, with growth of 2% in total supply offsetting demand growth of 1%, the Silver Institute industry association said on Wednesday.
Silver, used in jewellery, electronics, electric vehicles and solar panels as well as an investment, faces the fourth year of a structural market deficit, the Silver Institute said in a review prepared with consultancy Metals Focus.
Record industrial demand and a recovery in jewellery consumption will lift demand to 1.21 billion ounces in 2024 despite a 16% decrease in physical investment, according to the review.
Mine supply is expected to rise by 1% led by higher production in Mexico, Chile and the US, while recycling will add 5% due to a spike in western silverware scrap.
With spot silver prices up 32% so far this year amid gold’s rally and improved outlook for industrial demand, exchange-traded products (ETPs) are on track for their first annual inflows in three years, according to the review.