According to the recently published Global Silver Demand Report for 2024, global silver demand is expected to rise 1 percent, pushed higher by the continued strength of industrial end-uses and a recovery in jewelry and silverware demand.
Silver industrial fabrication is forecast to post a 4 percent rise in 2024 to a record 690 million ounces (Moz), building on the all-time highs achieved last year. In line with the trend in recent years, the photovoltaics (P.V.) and automotive industries will remain key drivers of growth this year.
Jewelry demand is expected to record a 6 percent rise, and India will contribute the bulk of gains this year. This follows a sharp pull back in 2022 when Indian demand weakened after a post-COVID surge in 2021. On top of a return to more “normal” levels, a positive economic backdrop and consumers getting used to high rupee silver prices should also underpin growth this year.
In the U.S. and Europe, soft consumer sentiment may continue to weigh on jewelry consumption, but retailers’ stock replenishment will likely mitigate the impact on fabrication. In line with the jewelry sector, as demand normalizes, a recovery in India will lift global silverware fabrication by 9 percent.
By contrast, silver physical investment is projected to decrease by 6 percent to a four-year low, with losses dominated by the U.S. Solid economic growth and further gains in the U.S. stock market will be key drivers behind this weaker investor interest across all precious metal coins and bars.
In India and Europe, a modest recovery is expected this year, compared with a depressed 2023 total. In the former, as Indian investors become accustomed to high rupee prices, bargain hunting is expected on price dips. Even with a recovery, Europe’s total volumes will remain near multi-year lows.