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Silver's gains have been even higher than gold's so far this year, and the global metal market is expected to post a fourth consecutive year of structural deficit, according to the Silver Institute's annual report. World Silver Survey.
The global silver deficit is forecast to increase 17% to 215.3 million ounces in 2024 due to a 2% growth in demand to a new record of 1.22 billion ounces, led by strong industrial consumption, along with a 1% decrease in total supply, according to the report, prepared by researchers from the consulting firm Metals Focus.
The study showed an estimated silver market deficit of 184.3 million ounces for 2023, the second-highest deficit on record, surpassed only by the 2022 deficit of 263.5 million ounces.
Despite the deficit, visible silver inventories, as well as huge stocks of the metals held by individuals and investors, continue to rise. protect the silver market from a squeeze for now.
“Identifiable silver inventories, as well as metals held off-exchange, remain considerable. However, some of this silver may be tightly held, so it will be interesting to see, in the future, what impact the current deficits in the market,” Metals Focus CEO Philip Newman said.
While “the traditional view is that silver will outperform gold in a bull market,” silver in the first month is up 14.3% so far in April and 18.8% this year; Gold has gained 6.9% this month and 15% year to date.
First month Comex silver (XAGUSD:CUR) for April delivery closed on Wednesday +0.1% to $28,346 an ounce, its 14th gain in the last 15 sessions, while April's front-month Comex gold (XAUUSD:CUR) ended -0.8% at $2,371.70 an ounce, still the second-highest deal in history.
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“Geopolitical uncertainty continues to support gold, (and) prices will only decline if central banks stop buying or if investors return to a risk-on phase,” Blue Line Futures chief market strategist Phillip Streible told Reuters. .
