Silver Institute: Peak Demand Drove Silver to Huge Supply Deficit

However, the demand is expected to cool off somewhat in 2023.

SEATTLE (Scrap Monster): The World Silver Survey Report published by the Silver Institute noted that global silver demand rose by 18% in 2022 to touch record high of 1.24 billion ounces. This has led to huge supply deficit, it noted. Furthermore the Institute predicts silver shortages to accelerate in the years to come.

During 2022, the global silver market was undersupplied by 237.7 million ounces, probably the most significant deficit on record. The undersupply during the previous year coupled with 51.1 million ounce shortfall in 2021 has completely wiped out cumulative surpluses from the previous decade.

According to the Institute, the demand for silver from all major users, including jewellers, industry and buyers of silver bars and coins, hit record highs last year. The Institute predicts 16% surge in demand for the metal this year to 1.21 billion ounces. India recorded robust demand, importing huge amounts of silver in 2022. However, the demand is expected to cool off somewhat in 2023.

Silver is expected to average at $21.30 an ounce this year, modestly lower from the average of $21.73 an ounce in 2021.

Over the long term, demand for silver from industrial sector is expected to remain strong. Meantime, it anticipates no great deal of movement in silver supply.

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