Silver Prices: Can They Rise More in 2024?

Silver may be the second most popular metal among traders after gold. It is true that gold has cast its shadow on other metals since it has risen by 15% since the beginning of the year. But what if we’d told you that silver prices have surged by almost 30% year to date?

By reading our article you will learn valuable insights regarding trading silver and the forecasts regarding silver prices.

Silver Production Deficit Likely To Grow In 2024

The Silver Institute in its World Silver Survey 2024 survey suggested that silver, which was once considered an industrial metal, is now characterised as a precious metal. According to the institute’s analysts, global silver production is expected to marginally decrease by 0.8% y/y to 823.5Moz in 2024. Silver’s market deficit is expected to grow by 17% in 2024 as supply is likely to drop and industrial demand soars, potentially hitting a record figure. The larger deficit is expected to have a significant effect on currently ample inventories.

World Bank Forecasts Silver Prices Rising In 2024

The World Bank in its Commodity Markets Outlook published in April 2024 sees silver prices increasing by 7% this year, on an annualised basis, and a further 4% in 2025. However, the report does note that weaker than expected industrial activity could play a role in how prices could be adjusted.

World Bank’s analysts stress that silver prices went up by 0.5% in the first quarter of 2024 and added: “Silver prices edged 0.5 percent higher in 2024Q1 (q/q) and gained further in April, owing to recovering industrial activity. In 2024, demand for silver is expected to increase modestly, driven by its dual appeal as both a financial asset and an industrial commodity. Industrial demand, which accounts for almost half of global silver consumption, continues to be supported by expanding vehicle electrification and renewable energy infrastructure, and will likely be further boosted by a recovery in jewelry and silverware demand. Investor interest in silver is set to be bolstered by advanced-economy interest rate cuts later this year.”

Commerzbank Revises Silver Prices Outlook

Economists at the German Commerzbank revised their silver prices outlook for the rest of the year. In their updated note released at the end of May, Commerzbank’s analysts raised their projections mentioning that silver prices could come in at $30 by the end of the year, slightly above $29 which was their previous forecast.

A similar rise is forecast for 2025 as the German bank’s analysts see silver prices coming in at $31, one US dollar more than their previous projection.

ANZ: Silver Supply Growth Can’t Match Annual Demand Growth

Commodity analysts ANZ bank said that supply growth is insufficient to meet annual demand, which is likely to be around 4-5%.

In their report they noted: “We estimate the market deficit will widen to 138 million ounces this year, which is 12 per cent of the annual demand. This market deficit will likely drive further withdrawal in inventories, supporting prices. We expect silver price to move above US$31 an ounce by the end of this year and average above US$27 an ounce in 2024.”

The New Zealand bank’s economists said that “industrial application contributes more than 50 per cent of total silver demand. Electrical and electronics is the dominant sector, with a demand share of 35 per cent. An upturn in the electronic cycle structurally supports the demand for silver,” adding that “Chile and Peru have faced operational challenges in recent years, which capped the growth in silver supply after the steep decline during the pandemic. Silver supply from mines is likely to grow as investment in the mining sector returns.”

Trading Silver With Admirals

Opening an account with Admirals allows you to trade silver or a variety of other metals such as gold, copper, palladium, platinum and others. An Admirals account also gives you access to popular trading platforms such as the MetaTrader 4 and MetaTrader 5 or the in-house Admirals Platform that can be valuable assets supporting a trader’s plans.  

Minimal experience when it comes to trading is a problem that beginner traders face when first navigating the markets. Global markets, however, are subject to rapid developments, a characteristic that doesn’t make them beginner friendly. As experience is gained by time, beginners could start building their traders’ knowledge by delving into educational materials provided by brokers. Articles, how-to guides, webinars and other videos could prove valuable as they give answers to people entering the world of trading for the first time.

Once beginner traders gain some knowledge, it is likely that they will put it to the test. Nevertheless, before executing any strategy, they should learn how to use risk management tools such as the stop-loss and the take-profit orders. These tools don’t eliminate but mitigate risks. Testing trading strategies and risk management tools on a demo account where only virtual funds are involved could be a good start for beginner traders.

Test Your Trading Strategies on an Admirals Demo Account

Are you interested in practising trading without risking your funds? A demo trading account from Admirals allows you to do just that, whilst trading in realistic market conditions. Click the banner below to open a demo account today:

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.