Silver Institute sees market deficit narrowing to 4-yr low on higher output
This story was originally published at 13:59 IST on 17 April 2025
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MUMBAI – The deficit in the global silver market is expected to fall to a four-year low of 117.6 million ounces this year because of higher production, the Silver Institute said in a release. Total demand is projected to fall slightly to 1.15 billion ounces and total supply of the metal is estimated to rise by 1.5%, led by higher mine production, the institute said on Wednesday.
Silver's industrial demand is seen flat this year, while demand for both jewellery and silverware is expected to weaken. However, a modest recovery in coin and bar demand in some Western markets should largely mitigate the losses, the institute said. "An extended period of elevated tariffs, or a further escalation of global trade wars, could lead to significant supply chain disruptions and sharply lower global GDP growth. These will weigh on industrial, jewellery, and silverware demand, though physical investment could benefit from rising safe-haven purchases," the institute said.
In 2024, industrial demand for the metal rose 4% to 680.5 million ounces, reaching a new record high for the fourth consecutive year. Investment in grid infrastructure, vehicle electrification, and photovoltaic applications continued to support the industrial demand for silver. Demand was further boosted by end-uses related to artificial intelligence, which drove growth in consumer electronics shipments, it said.
China accounted for the largest share of industrial demand gains with a 7% rise, while India recorded a 4% increase. Europe saw weaker demand across most countries in the region, except for one-off gains in the UK, while demand in the US declined by 6% in 2024.
The global silver market was in a deficit of 148.9 million ounces in 2024. Total demand fell by 3% to 1.16 billion ounces last year, primarily due to weakness in physical investment and slightly lower silverware and photographic demand.
Silver jewellery fabrication rose by 3% to 208.7 million ounces in 2024. India accounted for the bulk of these gains due to factors such as the import duty cut, a healthy rural economy, and the ongoing rise in purities, the institute said. In contrast, China saw a third consecutive year of losses amid a challenging economic backdrop, it said.
Demand for silverware declined by 2% to a three-year low of 54.2 million ounces. The drop was driven by softer demand in India, where elevated prices weighed on the gifting segment. Coin and bar demand fell by 22% to a five-year low of 190.9 million ounces, led by double-digit declines across all major Western markets. End
Reported by Ashutosh Pati
Edited by Subhojit Sarkar
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