The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid the global shift toward renewable energy, the silver market is grappling with mounting pressure from a persistent supply-demand gap. According to reports, the global silver market is heading toward its sixth consecutive annual deficit, despite aggressive efforts by the solar industry to reduce the amount of silver used per panel. The rapid expansion of global solar capacity is currently outstripping technical 'thrifting' measures, maintaining a structural shortage in the market.
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Sign InThis deficit occurs as precious metals and industrial commodities show varying performance, with gold and silver reaching significant levels in 2024 supported by central bank and industrial demand. Per market data and Silver Institute projections, global silver demand is expected to reach 1.2 billion ounces in 2024—the second-highest level on record—driven by a 20% surge in photovoltaic applications. Meanwhile, mine production continues to struggle with growth, reinforcing bullish fundamental drivers.
Looking ahead, traders are monitoring key technical levels for the white metal amidst global market volatility. According to the economic calendar, upcoming Manufacturing PMI releases across major economies will provide further clarity on future industrial demand. Markets are also awaiting inflation data from the Eurozone and the US to gauge the trajectory of monetary policy, which remains a primary driver for silver's attractiveness as both an industrial and investment asset.