Every key demand segment, except photography, is configured to record a new peak. Industrial demand is on track to grow to 539 million ounces (Moz). Only 10% of industrial demand for gold). Industry forecasts project that demand for silver for electric vehicles is likely to eventually exceed the volume of silver used in photovoltaic energy.
On the demand side, all segments of silver demand are rebounding, led by industrial, jewelry and physical investment. Overall industrial demand represents approximately half of the annual demand for silver, and photovoltaic demand represents approximately one-fifth of all industrial production (and its share is increasing, since photovoltaic energy is growing faster than general industrial use). The current environment may be dominated by risk-averse behavior, but that is not the main factor for long-term demand for silver, especially given its dual nature as a precious metal and an industrial metal. Silver is driven significantly more by industrial demand than by gold (approximately 50% of industrial demand for silver) than in the photograph, which represents a small and decreasing part of demand for silver, there was a small uptick after COVID due to the tendency to catch up on X-rays in healthcare after the decrease in lockdowns.
Silver jewelry and eating utensils, which account for approximately 25% of the annual demand for silver, have long been prized for their brilliant brilliance and ease of handling. We view the history of the energy transition as a major force for silver demand this year and in future years. Although the supply of silver faces some restrictive trends, the upturn in demand could be sustainable, thanks to the fundamental role of silver in growing green energy initiatives. The physical demand for silver coins and ingots is the most volatile demand category (and it's difficult to get real-time data in the middle of the year).
The current environment may be dominated by risk-averse behavior, but that is not the main factor for long-term demand for silver, especially given its dual nature as a precious metal and an industrial metal.