(MENAFN) The Silver Institute, a United States-based organization that monitors the metal, stated in its most recent report that the world is on the verge of a significant silver supply shortage this year.
Based on the report posted on the agency's official website, global demand for silver from industrial consumers, jewelry and home goods producers, and retail investors is anticipated to increase by a record 16 percent compared to last year, reaching a new record high of 1.21 billion ounces by the end of this year.
The result is a multi-year deficit in silver of 194 million ounces, which is four times the level of last year. According to the report, the amount of silver in storage in London and New York that is monitored by COMEX and the London Bullion Market Association (LBMA) has already decreased by about 370 million ounces, or 25 percent, this year.
The agency points out that one of the main factors boosting the demand for silver is the growth in use by automakers, which is rising as more electronics are being utilized in automobiles. Demand is also being impacted by the widespread deployment of 5G technology and the worldwide push toward renewable energy. For instance, manufacturers of solar panels are stockpiling the metal more and more. Finally, due to consumers taking advantage of the low prices to replenish their inventories after they declined in 2020 and 2021, silver demand in India nearly doubled this year.
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