While there remains a growing buzz of excitement surrounding Gold and Copper with prices topping $2,450 an ounce and $11,104 per ton respectively, for the first time ever – traders are starting to shift their attention to Silver on rising expectations that the grey metal will be next to hit new record highs.
Silver Prices Poised to Explode Amid Unprecedented Supply and Demand Imbalance
According to the recently released World Silver Survey – 2024 marks the fifth consecutive year of a Silver shortage – with this year in particular being one of the most intense on record.
Silver demand exceeded supply in 2023, resulting in a structural market deficit of over 142 million ounces. The forecast indicates that the annual production shortfall will nearly double to 265 million ounces by the end of 2024, due to surging industrial demand.
Historically, half of the demand for Silver has been industrial and the remaining half has predominantly been investment related.
However, in recent years, the balance has shifting in favour of industrial demand, which currently accounts for 64% of the total global demand for Silver. Put another way, that’s a whopping increase of 19% from a year ago.
And this trend shows no sign of slowing down anytime soon.