Silver Institute: Global Silver Demand to Surge in 2024

SEATTLE (Scrap Monster): According to the latest forecast published by the Silver Institute, the global demand for the white metal is expected to hit the second highest level on record during the current year.

The demand is forecast to reach 1.2 billion ounces in 2024, mainly driven by stronger industrial offtake. In the shorter term, it foresees investments in precious metals complex to remain under pressure, due to less probable start to U.S. rate cut as well as concerns over Chinese economic slowdown. However, as U.S. Fed starts interest rate cuts in the second half of the year, silver investments are expected to see a spike.

The global silver demand is expected to jump higher by 1%. The silver industrial fabrication is forecast to witness an increase by 4%. The silver industrial market will get additional lift from anticipated recovery in consumer electronics during the year. Meantime, the jewelry demand is projected to rise by 6% in 2024, with India contributing to majority of the projected gains.

In contrast, silver physical investment is projected to record 6% decline in 2024 to hit the lowest level in four years.

The total silver supply is forecast to grow by 3% to the highest level in eight years. The silver mine production is expected to rise by 4%. The silver recycling volumes are predicted to edge lower by 3%, the Silver Institute said.