Silver Expected to Experience Growing Deficit in 2024 Due to Supply Challenges
Silver, often referred to as the “poor man’s gold,” is a precious metal that has long been valued for its use in jewelry, coins, and industrial applications. However, recent trends in the silver market suggest that the metal may be facing a growing deficit in the coming years due to supply challenges.
According to a report by the Silver Institute, global silver demand is expected to outpace supply in 2024, leading to a deficit of approximately 35 million ounces. This deficit is largely attributed to a combination of factors, including declining mine production, reduced scrap supply, and increasing industrial demand.
One of the key factors contributing to the expected deficit in silver supply is the decline in mine production. Many of the world’s largest silver-producing mines are facing challenges such as declining ore grades, higher production costs, and geopolitical instability. As a result, silver production is expected to decrease by around 2% in 2024, further exacerbating the supply shortage.
In addition to declining mine production, the supply of recycled silver from scrap sources is also expected to decrease in 2024. This is due to a combination of factors, including lower silver prices, reduced consumer spending on luxury goods, and increased regulatory restrictions on the recycling industry. As a result, the supply of recycled silver is expected to decline by around 5% in 2024, further contributing to the growing deficit.
Furthermore, industrial demand for silver is expected to increase in 2024, driven by growing demand for electronic devices, solar panels, and other high-tech applications. This increased demand for silver in industrial applications is expected to further strain an already tight supply situation, leading to higher prices and potential shortages in the market.
Overall, the outlook for the silver market in 2024 is one of growing deficits and supply challenges. Investors and industry stakeholders should be prepared for potential disruptions in the silver market and consider diversifying their portfolios to mitigate risks associated with a tightening supply situation. As always, it is important to stay informed about market trends and developments in order to make informed decisions about investing in silver.
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- Source: https://zephyrnet.com/silver-to-see-growing-deficit-in-2024-as-supply-struggles/