Silver Supply/Demand Deficit
Large Silver Supply/Demand Deficit is Expected to Continue in 2025 for the Fifth Consecutive Year
By Mark Ferguson
Projections by the Silver Institute forecast another large supply/demand deficit for silver for the fifth consecutive year. The Institute expects total global demand for silver to be around 1.2 billion ounces in 2025 versus total global supply at 1.05 billion ounces this year. That’s a deficit of 150 million ounces. These totals include totals such as supply projections from mining production and recycling and demand from industrial use, jewelry and silverware, and investment.
Here are the supply/demand totals for silver for the past four years as published in a chart prepared for the Silver Institute:
| (Millions of ounces) | 2021 | 2022 | 2023 | 2024 |
|---|
| Total Global Demand | 1099.6 | 1278.9 | 1195.0 | 1219.1 |
| Total Global Supply | 1004.3 | 1015.4 | 1010.7 | 1003.8 |
| Total Global Deficit | 95.3 | 263.5 | 184.3 | 215.3 |
I’ve been buying and selling precious metals related products professionally since I was 16 years old in 1969 and I’ve watched the markets for gold and silver on a daily basis ever since. As a global financial metal, gold typically leads market activity and silver follows. Even though silver is more volatile than gold, I recommend silver over gold for the individual investor.
As I write this, the price of gold has set a new record-high of more than $3,100/ounce while silver is around $34/ounce. The price of gold is in uncharted territory, while the price of silver needs to rise by nearly 50% to reach it’s previous high of $50/ounce set in 1980 and again in 2011. That’s why I recommend silver over gold for the individual investor!
What’s more, precious metals “gurus” who study these markets and write books and articles about gold and silver project that gold could reach between $5,000 and $10,000 per ounce while silver will reach a triple-digit price exceeding $100/ounce during the next few years. In fact, one “guru” projects silver will peak at $300/ounce, while another has stated that a price between $250 and $500 per ounce is “entirely possible.”
These are not high-priced projections that these guys just randomly plucked out of thin air. They have their reasons for making these projections. Among the considerations that have gone into these projections are things like the historic gold/silver price ratio, gold/silver mining ratio, U.S. debt to GDP, inflation projections, and more.
If you’d like to discuss investing in silver, feel free to call me for a friendly chat about buying and selling silver. I can be reached at 920-233-6777.