What is the current supply and demand situation for silver?

The current supply and demand situation for silver is complex and influenced by several factors. Here is an analysis of the available data:

1. Silver Supply Growth: The total global silver supply is forecasted to grow by 3 percent in 2024, reaching an eight-year high of 1.02 billion ounces. This growth is driven by a recovery in silver mining, which is the primary source of supply.
2. Byproduct Mining: Over 70% of silver mining supply is a result of byproduct mining, where silver is extracted alongside other metals like lead, zinc, and copper. Higher prices for these byproduct metals can significantly impact silver supply.
3. Recycled Silver: Supplies of recycled silver have fallen by 28% since 2012, and they will increase as silver prices rise, but only at significantly higher prices. This indicates that the current supply of recycled silver is limited.
4. New Silver Deposits: The discovery of new silver deposits is a long-term factor in supply. However, there is no recent data on the discovery of new deposits that could significantly impact the current supply situation.
5. Silver Demand Trends:
   • Photovoltaics (PV) Demand: Demand for silver from solar PV panel manufacturers, particularly in China, is forecasted to increase by almost 170% by 2030. This surge in demand is driven by the global solar power boom.
   • Industrial Demand: Silver is used in various industrial applications, including electronics, batteries, and solar panels. The demand for these products contributes to overall silver demand.
   • Investment Demand: Silver is also sought after as an investment due to its perceived value and scarcity. This demand can fluctuate based on market conditions and investor sentiment.

Given the current trends, the silver supply is increasing, but the demand is growing even faster, particularly in the solar industry. This suggests that the demand for silver may outpace the supply in the near future, potentially leading to a silver shortage and higher prices. The limited supply of recycled silver and the significant increase in demand for silver in PV applications are key factors that could drive the price of silver higher.