Industrial Demand for Silver Could Push Prices Higher

Something is beginning to bubble in the silver market!

The year isn’t even half over and silver is already up more than 15 percent.  And yet it is still unbelievably inexpensive!  

But first, there is more going on in the silver market than just the insanity of Bidenomics.  More than Washington’s unpayable $34.6 trillion national debt.  There’s more than just the global dollar standard beginning to fray.

There’s all of that.  It’s all rocket fuel for the next big silver move.  But there are also the supply/demand fundamentals for silver.  They are equally explosive!

The totals from 2023 are in. Industrial demand for silver is setting records.  Here are a couple of numbers that grabbed our attention.  

Industrial demand for silver rose 11 percent in 2023 to a new record high.  At the same time, overall silver supplies are down, including the biggest supply component, mine production.  

You might easily have predicted that silver for photovoltaic applications (solar cells) would be higher.  But would you have guessed that photovoltaic demand would jump an incredible 64 percent?  In just one year?

China figures heavily in the PV sector, and indeed total industrial silver demand from China climber 44 percent in 2023.

Earlier this year we cited one analyst who described silver as “stupidly cheap!”  The rising silver price confirms that he’s right.       

Silver is still way below its all-time highs.  Silver was $50 an ounce in 1980. That was 44 years ago.  Are there any other major industrial commodities that are 40 percent below their price of 44 years ago?  Don’t kid yourself! 

Silver reached highs of about $50 in both 2011 and 2012.

Our point is that silver today is more than 40 percent below its old highs last set a dozen years ago.  And there is one thing you need to know about the silver market.  When it takes off, it really takes off and even outperforms gold itself!