Supply shortages create a shortage in the silver market
Persistent supply shortages will play a critical role in determining silver’s future trajectory.
According to the Silver Institute, global silver demand has exceeded supply for three years in a row, with a projected shortage of 215 million ounces by 2024.
This imbalance is caused by increasing industrial consumption and limited production from new mines. Despite the price increase – from $13.30 per ounce in 2016 to over $31 today – production remains 62.8 million ounces below the 2016 peak.
The Bloomberg NEF report highlights that a broader shortage of key transition metals could further increase silver prices.
The report estimates that an investment of $2.1 trillion is needed by 2050 to secure a stable supply of raw materials needed for clean energy technologies.
Without this investment, the costs of essential metals such as aluminum, copper and lithium could rise sharply by 2030.