Industrial demand for silver, largely driven by solar photovoltaic (PV) technology, is expected to increase 7% year-on-year and reach 700 million ounces. Total demand is expected to reach 1.21 billion ounces in 2024, up 1% despite expected declines in the photography, jewelry and physical investment sectors.
This trend highlights the growing role of green technologies in sustaining demand.
Strong US dollar increases short-term pressure on silver
The strength of the US dollar, fueled by optimism surrounding newly elected President Donald Trump’s pro-growth policies, has put additional pressure on silver prices. Trump’s recent election victory has reignited expectations for inflation tariffs and other growth-oriented policies, further boosting the dollar and dampening demand for USD commodities.
The October US Consumer Price Index (CPI) report, which points to persistent inflation, also contributed to the dollar’s rise. The rise in the CPI strengthened the dollar as investors anticipate a stable interest rate environment, adding pressure on silver prices in the near term.
Silver price increase in 2024 driven by green economy
Despite recent declines, silver prices are up 29% this year and are trading near $35 an ounce – a level last seen in 2012. The average silver price in 2023 was $23.35 per ounce, but this year’s increase reflects strong investor interest.
In 2024, demand from the PV sector alone increased by 64% to 193.5 million ounces, underscoring silver’s role in renewable energy.