The global demand for silver continued to rise in 2023, making it the 3rd consecutive year when demand exceeded the supply, says The Silver Institute. The silver demand from the solar PV industry increased 64% annually, surpassing estimates. 

According to the institute’s latest annual edition the World Silver Survey 2024, the world produced a total of 1,010.7 million ounces (Moz) (31,437 tons) of silver in 2023, representing a 0.5% decline over the previous year. Even though the annual silver demand declined by 7% annually to 1,195 Moz (37,169 tons), it outstripped supply. 

Demand from industrial applications increased 11% annually as these used a record high of 654.4 Moz ($20,353 tons) last year, thanks to green economy space. According to the survey writers, “Higher than expected photovoltaic (PV) capacity additions and faster adoption of new-generation solar cells raised global electrical & electronics demand by a substantial 20 percent.” 

In 2023, the global solar PV industry demand for silver rose to 193.5 Moz (6,017 tons), an annual increase of almost 64%. In 2024, it forecasts the PV industry demand for silver to jump up by 20% to 232 Moz (7,217 tons) as it believes solar installations may not be able to replicate the success of the last 2 years. Geopolitics and trade disputes too may disrupt its forecast, it cautions. 

Chinese silver industrial demand rose by 44% annually to 261.2 Moz, majorly due to green applications led by solar PV. The country accounted for over 90% of the global solar panel shipments in 2023. 

Power grid construction and automotive electrification too contributed to the demand for silver in 2023. 

The decline in silver demand was felt in the price-sensitive physical investment, jewelry and silverware sectors. In 2023, the average silver price grew by 7% to $23.35/oz and as of April 12, 2024, it increased 30% since the beginning of the year.  

The global silver mine production dropped 1% year-on-year (YoY) to 830.5 Moz (25,830 tons) in 2023 attributed to the labor strike at Newmont’s Peñasquito mine in Mexico which still was the leasing silver mining country, followed by China, Peru, Chile and Bolivia.   

Analysts predict another solid year for total silver demand in 2024, expecting it to grow by 2%, driven by industrial fabrication. Even though the demand is anticipated to go up, the survey writers believe total silver supply will decrease by a modest 1%. 

Commissioned by The Silver Institute, the survey was independently researched and produced by the London-based precious metals consultancy Metals Focus. The complete survey is available for free download on The Silver Institute’s website.