SilverOne metal that has already plunged into deficit territory...

Silver

One metal that has already plunged into deficit territory is silver. While often bought for investment purposes, silver is primarily used for industrial applications such as electronics and automotive. It’s also a key ingredient in solar panels, and as the world moves towards renewables, demand from that sector has grown exponentially.

The Silver Institute reported a 184.3 million-ounce deficit in 2023 on the back of robust industrial demand.

SI expects demand to grow by 2% this year, led by an anticipated 20% gain in the PV market. Industrial fabrication should post another all-time high, rising by 9%. Demand for jewelry and silverware fabrication are predicted to rise by 4% and 7%, respectively.

Total silver supply should decrease by 1%, meaning 2024 should see another deficit, amounting to 215.3Moz, the second-largest in more than 20 years.

Silver is in the fourth year of a shortage, with mined supply seemingly unable to keep up with demand, which is strongly influenced by the solar and electronics markets.