Solar underpins record high industrial demand for silver

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Demand for silver across industrial applications is expected to increase 7% year on year in 2024, reaching 700 million ounces (Moz), according to year-end estimates from the Silver Institute and consultancy Metals Focus.

The institute said the growth in industrial demand has been “underpinned by gains from green economy applications, particularly in the photovoltaic sector.”

This means that demand across the total silver industry is expected to increase by 1% year on year to 1.21 billion ounces in 2024. This is expected despite an anticipated fall in demand for silver across the photography, jewellery, silverware, net physical investment, and net hedging demand industries.

Meanwhile, global supply of silver is expected to increase by 2% year on year. The Silver Institute said the global silver market is on course to a physical deficit in 2024 for the fourth consecutive year, at around 182 Moz.

“This year’s deficit is little changed from 2023, and still elevated by historical standards,” the institute said. “More importantly, Metals Focus forecast this deficit will persist for the foreseeable future.”

The Silver Institute noted that the price of silver has posted a “remarkable rally” in 2024, surging 29% from the beginning of the year to Nov. 11. The increase has seen prices almost touch $35 for the first time since 2012.

The Silver Institute’s World Silver Survey 2024, published in April, shows that the average price for silver stood at $23.35 per ounce in 2023. Last year, demand for silver in the PV industry increased by 64% to 193.5 Moz.

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