Global demand for silver is expected to rise 16% this year to more than 1.2B oz, creating the biggest deficit in decades – 194M oz, quadruple the 48M oz deficit in 2021 – the Silver Institute reported this week.
The group said the use of silver by industry, for jewelry and silverware. and for bars and coins are all expected to reach record levels an demand in India nearly doubled this year, as buyers took advantage of low prices to replenish stockpiles drawn down in 2020-21.
Silver demand will remain strong from the auto and solar panel industries, causing further silver supply deficits in the coming years but not as large as in 2022, according to the report.
Also noteworthy: The amount of silver stored in vaults in London and New York monitored by Comex and the London Bullion Market Association has dropped 370M oz, or 25%, this year.
Front-month Comex silver (XAGUSD:CUR) snapped a four-week winning streak in the week just ended, settling -3.1% to $20.976/oz; silver prices have fallen ~10% YTD.
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