The Silver Institute's latest supply and demand data show the global silver market remains structurally short of metal even as mine output grows. Total mine production rose to 819.7 million ounces in 2024 and is forecast to reach 835 million ounces, a 2 percent increase. Total supply, including recycling, is projected to climb 2 percent to roughly 1,030.6 million ounces.

Demand tells a different story. Total silver demand fell to 1,164.1 million ounces in 2024 and is forecast to decline another 1 percent to 1,148.3 million ounces, a shift driven partly by softer photovoltaic demand as manufacturers substitute copper and other materials at high prices. Industrial demand remains a bright spot. It reached a record 680.5 million ounces in 2024, covering electronics, brazing alloys and solar applications, and is forecast to hold near that level.

Even with demand easing slightly, the market balance excluding exchange traded product flows shows a deficit of 187.6 million ounces, according to the data. That imbalance has persisted for multiple consecutive years, a trend the Silver Institute has tied to underinvestment in new mine supply relative to industrial consumption growth.

The price data in the same dataset shows the nominal silver price averaged $28.27 per ounce in 2024, up 21 percent from the prior year, reflecting the tightening physical market. Investors and industrial buyers are watching whether new mine supply can keep pace with electronics and solar demand growth in the years ahead.

Source: The Silver Institute - https://silverinstitute.org/all-world-silver-surveys/