(Kitco News) - Record industrial demand will continue to dominate the silver market and will be the most significant factor behind the precious metal’s third straight annual deficit, according to the latest update from Metals Focus on behalf of the Silver Institute. While industrial demand is expected to hit record highs this year, total global physical demand is expected to ease slightly to 1.14 billion ounces, down 10% from the record set in 2022.
“Gains in industrial applications will be offset by losses in all other key segments,” the analysts at Metals Focus said in their updated research. “Despite the fall, total demand remains elevated by historical standards, making the 2023 figure the second highest in Metals Focus’ data series.” The silver market’s strongest pillar is expected to grow by 8% to a record 632 million ounces this year. “Key drivers behind this performance include investment in photovoltaics, power grid and 5G networks, growth in consumer electronics, and rising vehicle output,” the analysts sai