The Silver Institute projects a 2% rise in global silver demand from 2023 to 2024, reaching around 1,219 tonnes. Beyond industrial use, silver is also attracting investors amid growing expectations of a 25-basis-point rate cut by the Federal Reserve in September. The CME FedWatch Tool indicates that the market has fully priced in this rate cut.
India’s Silver Demand Surge Expected to Lift Global Prices
India’s silver imports are set to nearly double this year, driven by increased demand from solar panel manufacturers, electronics producers, and investors seeking higher returns compared to gold. As the world’s largest silver consumer, India imported 3,625 metric tons last year.
However, imports are expected to climb to between 6,500 and 7,000 tons in 2024, supported by industrial needs and a recent reduction in import duties from 15% to 6%, making silver more accessible.
In just the first half of 2024, India imported 4,554 tons of silver, a sharp increase from 560 tons during the same period last year. This surge is partly due to robust investment demand, with local silver futures reaching record highs in May.
Additionally, industrial buyers have been stockpiling silver to hedge against rising prices, as India mainly imports the metal from the UAE, Britain, and China.
Kyrgyzstan’s Silver Export Boom and Its Global Impact
Kyrgyzstan’s silver exports skyrocketed in the first half of 2024, increasing 90-fold compared to the same period last year. The country exported 22.7 tons of silver valued at $17.9 million, a significant leap from just 312 kilograms worth $197,000 in the first half of the previous year.