The report also points to geopolitical instability and weakening fiscal positions as factors increasing silver’s appeal. Historical data demonstrates silver’s reliability during economic and geopolitical crises, making it a valuable hedge against inflation and currency devaluation.
For institutional portfolios, silver offers both protection during market volatility and growth potential through industrial demand.
Industrial demand drives long-term growth
Silver is becoming increasingly important for green technologies, including solar panels, electric vehicles and advanced electronics. The global shift to renewable energy and electrification is driving a continued increase in demand for silver, contributing to a projected supply shortfall of 182 million ounces by 2024.
This imbalance between rising demand and limited supply could result in increased price volatility, putting significant upward pressure on silver prices.
In addition, supply issues, including limited mining production, make silver a strategically important resource for industrial and investment purposes.
Geopolitics and Fed policy create additional volatility
Despite strong demand, silver faces near-term challenges from a stronger US dollar, which increases costs for international buyers. Recent geopolitical developments, such as escalating tensions in Eastern Europe, have increased the demand for safe havens.