Bars of 100-ounce silver are stacked inside The Safe House, a vault operated by Silver Bullion Pte, in Singapore.
Nicky Loh | Bloomberg | Getty Images
This could be a banner year for silver, with prices potentially hitting a decade-high.
Global silver demand is forecast to reach 1.2 billion ounces in 2024, which would mark the second-highest level on record, the Silver Institute said in a recent report.
“Stronger industrial offtake is a principal catalyst for the rising global demand for the white metal, and the sector should hit a new annual high this year,” said the institute, a nonprofit international association comprising various members across the silver industry. Silver is used primarily for industrial purposes and commonly incorporated in the manufacturing of automobiles, solar panels, jewelry and electronics.
“We think silver will have a terrific year, especially in terms of demand,” Michael DiRienzo, executive director of the Silver Institute told CNBC. He expects silver prices to reach $30 per ounce, which would be a 10-year high, according to data from LSEG.
Silver, which was trading at $22.4 per ounce, last hit $30 in February 2013.
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The institute sees a 9% climb in demand for silverware and a 6% rise in jewelry demand this year, with India expected to drive the jump in jewelry purchases. A projected recovery in consumer electronics is also poised to give the silver market an additional boost, the report stated.
That said, the institute noted that in the short term, a slowing Chinese economy and decreased odds of U.S. interest rate cuts early in the year could present a headwind to silver institutional investment.
However, the tides could turn in the second half of 2024, when most market watchers believe the U.S. Federal Reserve will start cutting rates.
Silver prices, like gold, tend to have an inverse relationship with…
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