The Silver Institute/World Silver Survey 2023/4-19-2023

“This year is expected to be another of solid silver demand. Industrial fabrication should reach an all-time high, boosted by continued gains in the P.V. market and healthy offtake from other industrial segments. Although bar & coin demand and jewelry fabrication are expected to fall short of last year’s exceptional levels, both are forecast to remain historically high. Supply, by contrast, is expected to achieve only low single-digit gains. As a result, this year will also see another large deficit for silver, amounting to a projected 142.1 Moz, which would be the second-largest deficit in more than 20 years.”

USAGOLD note: The structural deficits are the result of solid global demand and declining mine production. Of special note, TSI reports that the current supply shortfall amounts to “more than half more than half of this year’s forecasted annual mine production, and more than half of the inventories presently held in London vaults offering custodian services.” In general, TSI paints a bullish scenario for the metal going forward.