SILVER DEMAND from industrial applications reached a record during 2023, supported by expanding solar installations, automotive electrification and investment in power grids.
The World Silver Survey 2024, released yesterday by the Silver Institute, reported that industrial demand increased 11% to 654.4 million ounces.
Silver use in photovoltaic applications rose 64% to 193.5 million ounces. Higher solar capacity additions and the adoption of new-generation solar cells contributed to the increase.
However, stronger industrial consumption did not translate into higher demand across every sector. Total silver demand declined 7% to approximately 1,195 million ounces, following the record level reached in 2022.
Lower physical investment, jewellery and silverware demand contributed to the overall decline.
Despite that reduction, demand exceeded supply for the third consecutive year, producing an estimated market deficit of 184.3 million ounces.
Looking ahead, the survey forecast a further 9% increase in industrial demand during 2024 and a market deficit of approximately 215.3 million ounces.
Those figures remain forecasts. They highlight the growing importance of industrial consumption while leaving the final outcome dependent on economic activity, production and purchasing trends.
Disclaimer
This publication is for educational purposes only and does not constitute financial advice. It does not take into account any person’s investment objectives, financial situation or needs. Before making an investment decision, consider whether the information is appropriate to your circumstances and seek advice from a licensed financial adviser where necessary. Past performance is not a reliable indicator of future performance.