(Mike Maharrey, Money Metals News Service) Silver demand outstripped new supply for the fourth straight year as industrial demand set another record.
This was one of several stories featured in the new edition of Silver News published by the Silver Institute.
Silver industrial demand rose 4 percent in 2024 to 680.5 million ounces, according to data collected by Metals Focus. It was the fourth consecutive year of record industrial offtake.
Global silver demand exceeded silver supply last year, resulting in a structural market deficit of 148.9 million ounces.
The silver price rose 21 percent last year and charted a 59 percent trough-to-peak rally.
Last year’s record industrial demand primarily came from end uses stemming from artificial intelligence (AI) and applications in the green economy, specifically electric and telecommunications grid infrastructure, electric vehicles and charging stations, and photovoltaics.
China accounted for the largest worldwide share of industrial demand, with a 7 percent rise. India’s demand was also strong, rising by 4 percent.
Despite record industrial offtake, overall silver demand fell by about 3 percent to 1.16 billion ounces.
The drop was primarily due to weak investment demand, particularly in the West. Coin and bar demand fell 22 percent last year to a five-year low. However, India recorded a 21 percent rise, due to bullish price expectations and an import duty cut.
Silver mine output was flat in 2024.
Silver News also featured several interesting stories about new uses for silver in technology.
- Ethylene oxide (EO) is vital in the manufacture of many products, including plastics, textiles, disinfectants for medical equipment, antifreeze, adhesives, and more. However, EO comes with a downside – its production requires chlorine and produces significant greenhouse gas. After more than six years of research, scientists have discovered that using a silver catalyst with small amounts of nickel eliminates the need for chlorine while keeping production high and reducing greenhouse gas emissions.
- A multinational group of researchers from Pakistan, the United States, and Saudi Arabia has discovered that silver nanoparticles can prevent the growth of fungus on tomatoes. Not only does silver protect against microbes, but it also enhances growth. The research team noted, “Silver nanoparticles are also considered novel growth stimulators in plants and reported to improve biomass, promote germination, intensify the pigment content, and boost growth and fruit quality.”
- Indian scientists have developed a silver wire network on a stretchable material that can sense strain and accompanying pain and then respond with electrical pulses. The process mimics the way nerves operate. The goal is to produce a wearable device that can help doctors detect stress and pain early before it becomes chronic or untreatable.
Mike Maharrey is a journalist and market analyst for Money Metals 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.
