What Factors Determine the Demand for Silver?

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Similar to gold, the price of silver has also established an uptrend since October last year. The white metal has closely followed the price action of its yellow counterpart. However, its performance since entering 2024 has been abysmal, with multiple red candles forming. 

What are the factors determining the current demand for silver? Let us answer this question while giving our silver price prediction for 2024.  

Key Factors Driving the Demand for Silver

Silver not only has investment applications but also numerous industrial attributes. With that in mind, the following are the key factors determining the demand for silver. 

Industrial Fabrication

Silver is known for its electrical and thermal conductivity, which is why it has various industrial uses. While the demand for silver decreased in 2020 due to the pandemic, it was able to bounce back by 8% in 2021. In 2022, there was another uptick in silver demand in industries by 5%. 

However, the metal achieved a new high demand of 10%, translating to 1.14 billion ounces in 2023. 

There are three main industries within the electronic niche in which silver prospers. 


First is solar panels, in which silver’s thermal conductivity is used with photovoltaic cells.  Second is the automotive industry, which states that the demand for silver will increase to 90 million ounces by 2025. The third is the brazing and soldering industry. 


Jewellery is another factor that drives the demand for silver. While the white metal is far more affordable than its yellow counterpart, gold, its reflective features have made it favoured among most jewellery designers.

However, in 2023, it was reported that the total global consumption of silver jewellery dropped by 22%. This decline was due to decreased demand for silver jewellery in India. However, the demand for white metal in industrial applications offset this drop. 

Bullion Coins and Silver Bars

Total global demand for silver surged in calendar year 2021 by 19% to 1.05 million ounces, reaching its highest level since 2015, according to World Silver Survey 2022 released by the Silver Institute.

It then rose further in 2022 and 2023 and is expected to continue rising in 2024 – see Statista data here.


The expected demand for silverware in 2023 was 55.7 million ounces. It was an optimistic view since the pandemic hit its demand badly. However, there was an increase of 80% in demand in 2022. In 2023, it was expected that the demand would fall by 24% due to the current geopolitical conditions. 

Silver Price Prediction 2024

Silver has closely followed gold’s price action in 2024, opening at $24 and experiencing a steady decline with multiple large red candles. 

However, the drop it experienced on January 3, 2024, created a minor bounce. Since then, the asset has been climbing sporadically.

Silver price chart

But, experts believe that the price action of silver won’t be noteworthy this year. 

Christopher Lewis of the FX Empire writes, “It’s very likely that 2024 could be very similar to 2023. This is because, at the beginning of the year, I anticipate that a lot of people will be paying attention to interest rates and ignoring the fact that there could be some trouble under the hood.” 

He states that the silver market may test $26.20. However, the performance of this asset might be similar to 2023 since the same geopolitical conditions as last year are moving its price. 

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Alan Draper
Alan Draper

Alan is the Editor-in-Chief of Techopedia and is responsible for ensuring all the content is accurate, up to date, and relevant. Alan has previously worked in writing and editorial capacities for several leading websites, such as Business2Community and TechReport.