(Mike Maharrey, Money Metals News Service) Based on preliminary data, the silver market ran its fourth consecutive record market deficit last year.
This was one of several silver-related stories highlighted in the latest issue of the Silver Institute’s Silver News.
Record industrial demand and a recovery in the jewelry and silverware markets are projected to lift global silver demand to 1.21 billion ounces in 2024.
Meanwhile, mine supply is forecast to rise by just 1 percent.
The combination of surging demand and the modest increase in supply will result in a projected physical deficit in 2024 for the fourth consecutive year. At 182 million ounces, this year’s deficit is little changed from 2023, and still elevated by historical standards.
Record industrial demand is forecast to rise by 7 percent in 2024 to surpass 700 million ounces for the first time. According to the Silver Institute, Green energy applications, particularly in the solar sector, drove the jump in industrial silver demand.
Silver-backed ETFs are on track for their first annual inflows in three years, as expectations of Fed rate cuts have raised silver’s investment appeal.
Physical investment (coin and bar demand) is forecast to fall by 15 percent to a four-year low of 208 million ounces. Demand in the U.S. cratered by 40 percent, driving the overall decline.
There were also some interesting technological advancements using silver reported in the latest issue of Silver News.
- South Korean researchers have determined that by adding silver to kesterite-based solar cells, they may be able to increase their efficiency while being commercially viable. They found silver doping can allow the solar cell crystals to grow larger and faster without the defects that often accompany crystal growth.
- Physicists at Leiden University in the Netherlands say they have found a novel way to kill cancerous cells using a package of DNA and silver. The process targets malignant cells without harming surrounding structures. This could be a big step forward in cancer treatments as traditional chemotherapy and radiation protocols can harm patients.
- Researchers in South Korea are using a feature of silver nanoparticles to develop an anti-counterfeiting technology. Silver nanoparticles discolor when hit with ultraviolet light. The researchers trapped silver nanoparticles inside a polymer matrix and noted that the polymer color ranged from yellow to red depending upon combinations of size and amount of silver particles. Using pixel-sized amounts of a silver/polymer mixture, they produced high-resolution, color images with precise hues. By embedding these images in materials that must be counterfeit-proof, they were able to tell real from fake by what color they became when beamed with Ultraviolet (UV) rays.
- Silver has a low correlation with stocks and bonds along with a growing use as an industrial and high-technology metal. These factors make silver a relatively safe investment haven. Institutional investors can therefore strengthen their portfolios by investing in silver, according to a recently published report.
- Nanosilver applied to potato crops yielded greater nutritional value, according to a study by Polish researchers.
Mike Maharrey is a journalist and market analyst for MoneyMetals.com with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.
