Page 30 - Bullion World Volume 04 issue 12 December 2024

Global Silver

Industrial Demand

on Track for a New

Record High in 2024

The global silver market is set to record • The silver price has posted a remarkable rally during 2024-to-
a physical deficit in 2024 for the fourth date, nearly touching $35 for the first time since 2012. Through
consecutive year. Record industrial to November 11, prices have surged by 29% since the beginning
demand and a recovery in jewellery of this year. Leaving aside a brief drop to a three-year low of 73,
and silverware will lift demand to 1.21 the gold: silver ratio has largely held between 80 and 90 so far in
billion ounces in 2024, while mine supply 2024.
will rise by just 1%. Exchange-traded
products are on track for their first annual • Global silver demand is expected to rise by 1% year-over-year
inflows in three years as expectations of (y/y) to 1.21 billion ounces in 2024, making it the second highest
Fed rate cuts, periods of dollar weakness in Metals Focus’ series (which starts in 2010). Most of silver’s
and falling yields have raised silver’s demand segments are expected to strengthen this year, led by
investment appeal. These are some of the industrial applications. This leaves physical investment as the
key findings reported by Philip Newman, only key demand component to post a meaningful decline.
Managing Director at Metals Focus,
and Sarah Tomlinson, Director of Mine • Industrial demand is forecast to rise by 7% in 2024 to surpass
Supply, during the Silver Institute’s Annual 700Moz for the first time on record. In keeping with the last two
Silver Industry Dinner in New York this years, the growth in 2024 has been underpinned by gains from
evening, which featured historical supply green economy applications, particularly in the photovoltaic (PV)
and demand estimates for 2024. The sector. Higher demand is also expected from the automotive
following are the key highlights from their sector, as silver benefits from greater vehicle sophistication, the
presentation: rising electrification of powertrains and ongoing investments in
infrastructure, such as charging stations. While a challenging
macro backdrop has weighed on sales of consumer electronics,
the rapid adoption of AI technologies has resulted in a growing
need for technological upgrades, replacements and new
infrastructure investment, all of which have assisted silver
demand.

Silver jewellery and silverware are both projected to rise by
5% in 2024. For each segment, India has been the key growth
contributor, with particularly strong sales between late July
and early September when the import duty cut coincided with
a pullback in the dollar silver price. Jewellery consumption is
also set to grow in the US, which also benefits key Asian and
European exporters.

• Physical investment is forecast to fall by 15% to a four-year
low of 208Moz in 2024. Losses have been concentrating in the
US where coin and bar sales are on track for a 40% decline to

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