The Silver Institute projects that global silver demand will grow 2% from 2023 to 2024, reaching about 1,219 tonnes. Beyond industrial uses, silver has been attracting investors amid growing expectations that the Federal Reserve will cut interest rates by 25 basis points in September. The CME FedWatch tool shows that the market has fully priced in this cut.
Surging Indian silver demand expected to lift global prices
India’s silver imports are set to nearly double this year on rising demand from solar panel makers, electronics manufacturers and investors seeking higher returns than gold. India, the world’s largest silver consumer, imported 3,625 tonnes last year.
However, imports are expected to rise to 6,500-7,000 tonnes in 2024 due to industrial demand and a recent reduction in import tariffs from 15% to 6% making silver more available.
India imported 4,554 tonnes of silver in the first half of 2024 alone, up sharply from 560 tonnes in the same period last year. The surge was driven in part by robust investment demand, with domestic silver futures hitting a record high in May.
Moreover, with India importing its silver mainly from the UAE, UK and China, industrial buyers are stockpiling silver in anticipation of higher prices.
Kyrgyzstan’s silver export boom and its impact on the world
Kyrgyzstan’s silver exports surged in the first half of 2024, increasing 90-fold compared to the same period last year. The country exported 22.7 tonnes of silver worth $17.9 million, up from just 312 kilograms and $197,000 in the first half of last year.
