Report: The world is headed for a silver deficit.

Report: The world is headed for a silver deficit.

By year’s end, it is anticipated that global consumption will increase significantly, creating the largest demand-supply gap in decades.

The Silver Institute, a US-based organization that monitors the metal, stated in its most recent report that the world is on the verge of a significant silver supply shortage this year.

According to the report posted on the agency’s official website, global demand for silver from industrial consumers, jewelry and home goods producers, and retail investors is anticipated to increase by a record 16% compared to last year, reaching a new record high of 1.21 billion ounces by the end of 2022.

The result is a multi-year deficit in silver of 194 million ounces, which is four times the level of 2021. (48 million ounces). According to the report, the amount of silver in storage in London and New York that is monitored by COMEX and the London Bullion Market Association (LBMA) has already decreased by about 370 million ounces, or 25%, this year.

The agency points out that one of the main factors boosting the demand for silver is the surge in consumption by automakers, which is rising as more electronics are being used in automobiles. Demand is also being impacted by the widespread adoption of 5G technologies and the global push toward renewable energy. For instance, manufacturers of solar panels are hoarding the metal more and more. Finally, due to consumers taking advantage of the low prices to replenish their inventories after they declined in 2020 and 2021, silver demand in India nearly doubled this year.

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