Metals Focus: Global Silver Demand to Hit Fresh Peak This Year

SEATTLE (Scrap Monster): The recent research report compiled by Metals Focus for the Silver Institute says that silver demand will surge to touch its record level during the current year. The projected rise in demand will be mainly due to increased use of solar panels, triggered by increased focus by governments on renewable energy.

According to the report, the global silver demand is expected to touch 1.1 billion ounces this year, significantly higher by 5% compared with 2021. This is the highest level ever recorded by Metals Focus. The significant jump in demand will push the silver market into a deficit of 71.5 million ounces in 2022, following a shortfall of 51.8 million ounces during the previous year. The supply deficit market will carry on for some time, said Philip Newman, Director, Metals Focus.

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The report cites potential risks to industrial demand for silver, mainly due to uncertainties around the Russia-Ukraine war and the possibility of a global recession. Incidentally, industrial demand accounts for nearly 50% of the total silver consumption. On the other hand, the rebound from a slump during the Covid-19 pandemic will lead to increased silver usage, it said.

The report predicts silver prices to average at around $23.90 per ounce in 2022.