RE:RECORD HIGHS AHEAD FOR SILVER AND GOLD !Silver supply deficit reaches record high, could fuel price growth - Silver Institute report | Kitco NewsSilver supply deficit reaches record high, could fuel price growth - Silver Institute report | Kitco News Excerpts: Wednesday, the Institute published its 2023 Annual World Silver Survey, and according to the research, silver saw its most significant market deficit on record, hitting 237.7 million ounces. Metals Focus, the firm behind the research, noted that the deficits in 2021 and 2022 have more than offset the cumulative surpluses of the previous 11 years.
"Silver demand was unprecedented in 2022, and we don't say that to try and be sensational that is the only way to describe the market," Neman said. "The silver market has entered a new paradigm of deficits that kicked off in 2021."
Looking ahead, The Silver Institute and Metals Focus expect silver to post another "sizable deficit," even if it is down from last year's record highs. Analysts expect solid demand will create a market deficit of 142.1 million ounces in 2023.
The report showed that industrial demand continues to dominate the marketplace, even if investor interest drives prices. The report said that industrial demand rose to a record high of 556.5 million ounces last year, up 5% from 2021. Metals Focus expects another record year, with industrial demand rising 4% to 576.4 million ounces.