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Silver Set For A 'Terrific Year', Could Outsell Gold For Tenth Year

In a bullish outlook for the white metal, the Washington-based Silver Institute anticipates silver set for a 'terrific year', projecting prices to reach a decade-high in 2024.

Feb 08, 20245.4K Shares195.6K ViewsWritten By: Johnny K.Reviewed By: Luke Williams
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  1. Silver Might Outsell Gold Again In 2024
  2. Final Words
Silver Set For A 'Terrific Year', Could Outsell Gold For Tenth Year

In a bullish outlook for the white metal, the Washington-based SilverInstitute anticipates silver set for a 'terrific year',projecting prices to reach a decade-high in 2024.

According to the institute's latest report, silver demand is expected to surge to 1.2 billion ounces this year, marking the second-highest level on record. The non-profit organization attributes this optimism to robust industrial activities driving silver demand, especially as global manufacturing scales up.

Silver's indispensable role in industries such as car manufacturing, solar panels, electronics, and jewelrycontributes to its rising demand. The institute forecasts silver prices to soar to $30 per ounce in 2024, reaching a 10-year pinnacle.

Silver Might Outsell Gold Again In 2024

Silver and gold bars
Silver and gold bars

In what could shape up to be a banner year for silver, industry experts are forecasting a surge in prices, potentially reaching a decade-high as global demand for the precious metal skyrockets.

The Silver Institute, a nonprofit international association representing various stakeholders in the silver industry, recently released a report projecting global silver demand to hit a staggering 1.2 billion ounces in 2024. This would mark the second-highest level on record, driven primarily by robust industrial offtake. Silver's applications in the manufacturing of automobiles, solar panels, jewelry, and electronics have fueled this surge in demand.

Stronger industrial offtake is a principal catalyst for the rising global demand for the white metal, and the sector should hit a new annual high this year.- Silver Institute

Michael DiRienzo, Executive Director of the Silver Institute, shared his optimism, stating:

We think silver will have a terrific year, especially in terms of demand.- Michael DiRienzo

DiRienzo anticipates silver prices to reach $30 per ounce, a level not seen in a decade, according to data from LSEG. The last time silver hit $30 was in February 2013 when it was trading at $22.4 per ounce.

The institute predicts a 9% climb in demand for silverware and a 6% rise in jewelry demand in 2024, with India expected to be a driving force behind the increase in jewelry purchases. Additionally, a projected recovery in consumer electronics is poised to provide an extra boost to the silver market.

Despite these positive indicators, the institute acknowledges potential headwinds in the short term, citing a slowing Chinese economy and decreased odds of U.S. interest rate cuts early in the year. However, market dynamics could shift in the second half of 2024, with expectations of rate cuts by the U.S. Federal Reserve.

Silver, often referred to as gold's poorer cousin, shares a positive correlation with gold prices, albeit with a lag. Randy Smallwood, CEO of Wheaton Precious Metals, explained:

Here’s what usually happens with silver: it does move with gold, but it moves later.- Randy Smallwood

Silver's performance is intricately tied to the healthof the overall economy or businesscycle due to its extensive industrial applications. Unlike gold, which tends to rise during times of economic weakness, silver is more sensitive to economic changes and exhibits greater volatility.

The gold-silver ratio, currently standing at 90 ounces of silver needed to purchase one ounce of gold, reflects their relationship. Experts believe that while gold prices might experience an initial surge, silver is likely to outperform in the long run.

"Silver indeed could outperform gold, especially when the Fed begins to ease rates,"echoed Michael DiRienzo of the Silver Institute, underlining the potential for silver to shine brightly in the coming year.

Final Words

The silver market appears poised for a remarkable resurgence in 2024, according to the optimistic projections from the Silver Institute. With industrial activities driving demand and prices potentially hitting a decade-high at $30 per ounce, silver enthusiasts have good reason to anticipate a "terrific year" for the precious metal.

As global manufacturing gears up and various industries continue to rely on silver for its versatile applications, all signs point to a silver lining in the market landscape.

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