Silver Towards a Sustainable Supply Shortage?
The comments below are an edited and abridged synopsis of an article by Thomas Andrieu
In 2022, the demand for physical silver was 1.24 billion ounces (35,150 tons). This is simply the highest demand recorded on the market. On the other hand, supply is stagnant, which is creating an unprecedented supply deficit. This supply deficit amounts to nearly 6,740 tons, or nearly 20% of total demand.
Demand for silver is the result of growth in demand for photovoltaic panels, 5G networks, construction, and so on. And while India and Asian countries are capturing most of this demand, this rebound is most notable in the jewelry and investment sectors.
Up for discussion: Silver supply under pressure; rising production costs and a decline in mining; demand to remain strong in 2023; what are the projections for the price of silver; a balance of power (still) favourable to gold; and conclusion (the physical silver market is experiencing a supply deficit of nearly 7,000 tons; demand for silver has climbed nearly 18%; the cost of production increased by 16% in 2022; silver is struggling to rise in an environment where institutions are contributing to downward pressure; technically, the trend is bullish despite numerous resistances).
