A Closer Look at the Silver Market

12.12.23 - A Closer Look at the Silver Market

Gold last traded at $1,979 an ounce. Silver at $22.78 an ounce.

Silver Shortage: A Closer Look at Market Dynamics Heading Into 2024 -Investing Haven

The price of silver may not be reflecting the intensifying silver shortage, but it's a matter of time until the silver supply squeeze pushes the price of silver much higher.

Recent reports from the Silver Institute have sent ripples through the market. Let's simplify the complexities, focus on key takeaways and what it might mean for the silver market and silver price price going forward.

The topic of silver shortage has been center stage in recent weeks, particularly after the Silver Institute released its later physical silver market data. It evoked a lot of reactions as evidenced by data driven posts on social media.

Let's review the facts, and add commentary about the market dynamics that go a step further than the data points served by The Silver Institute.

The Silver Institute's update reveals a decrease in total silver supply due to production losses at major mines, notably the Penasquito mine. On the flip side, non-investment demand has surged, primarily driven by industrial use, reaching an all-time high. Despite slight dips in jewelry and silverware demand, the crux lies in the booming industrial demand, particularly for photovoltaic solar cells.