10 Emerging Trends in the US Silver Market for 2024

Summary

Silver is a soft, lustrous metal with a flair for captivating attention. Whether it is a shining piece of jewellery or a cutting-edge industrial application, silver has the potential to add a silver lining to everything. So before the price of silver soars higher, let us explore the 10 emerging trends in the US silver market for 2024. 

Introduction

As the world shifts towards sustainability, argentum is becoming everyone’s favourite element on the periodic table. Silver’s unique properties make it the most precious metal across industries. It has high reflectivity, high ductility, and high malleability. On a scale of 0 to 100, it has 100 % electrical conductivity. It is the finest electric conductor and is often used as a standard of measurement for other conductors. 

From computers, cell phones, and solar cells to EVs and water purifiers, silver is the most crucial raw material. Back in time, Egyptians used to believe that silver had protective properties against evil spirits. Well, you can label it as superstition but you cannot ignore its versatility. 

Understanding the silver economy

Silver is not just a glossy metal with industrial applications but also a safe-haven asset. Since the beginning of 2024, the price of silver has increased by 32.70%, the highest in 12 years. Analysts are raving about its growth and the rapidly increasing demand in the market. 

As we head into the last phase of 2024, the silver market is going through a significant transformation driven by industrial demand, economic policies and supply-demand dynamics. Let us look at the trends that influence the silver market.

1. Tech revolution

The industrial demand for silver is a major factor that determines its market price. Silver’s unmatched electrical conductivity makes it a crucial element for the manufacturing of electronic devices. The EV industry accounts for 2.9% of the global silver demand since EVs use silver for essential components and  battery connections. On the other hand, the solar industry takes up 16%. In the solar sector, innovations like N-type solar cells require higher silver content which further boosts the demand for silver. The demand is also growing because of the AI revolution which requires silver-laden semiconductors. All of this makes silver the most relevant metal in the tech landscape. 

2. Solar power shift

Fueled by the need to harness renewable energy resources, the solar energy industry is growing at a rapid scale. This trend is likely to accelerate as solar energy sector continues to advance. Since silver plays a pivotal role in the production of photovoltaic cells, the demand for the precious metal will always remain strong. With the U.S. Energy Information Administration (E.I.A) forecasting a 75% growth in solar power generation by 2025, the solar industry is expected to be one of the strongest drivers of industrial silver consumption. 

3. The Supply-Demand game

The supply-demand dynamic dictates the course of any economy. Although there is a strong demand for silver across industries, the supply part is struggling to meet the expectations. Global mine production is expected to rise by 4% but issues such as regulatory challenges, geopolitical tensions and community disputes over mining activities affect the output. There is a need to ramp up the mining operations to meet the industrial demand for silver. 

4. Silverware and Jewellery 

Silver is popular in the jewellery sector because of its natural beauty and shiny allure. After a sluggish  2023, the jewellery and silverware sectors are showing signs of recovery. Meanwhile, India is leading the charge in silver jewellery consumption thanks to its cultural affinity for the shiny metal.
The silver jewellery maintains the highest margin as compared to other precious metals. With the jewellery sector’s global demand predicted to grow by 6%, silver is expected to grow in the bling industry as well. 

5. Hard asset investment 

Silver coins and bars are often viewed as safe-haven investments. Since U.S. investors are focused on Stocks and Bitcoin, the demand for hard asset investment is declining. However, in other regions like Europe and Asia, the interest in physical silver investment is expected to grow. For NRIs, silver continues to be a store of wealth and a hedge against inflation and fluctuating economic conditions. The global jewellery demand is projected to rise by 6%, making silver a perfect choice for hard asset investment. 

6. Economic policies and Silver prices

The monetary policy of any state has a major influence on the silver market. The U.S. Federal Reserve’s shift to a flexible monetary policy in 2024 has caused silver prices to surge. Potential rate cuts for the next year will further increase silver’s appeal as a protective hedge against currency fluctuations. 

7. Silver for clean energy 

Silver is becoming a hot favourite for generating clean energy as the sustainable growth model gains momentum.  From EVs and photovotaic cells to semiconductor technologies, it is the most critical element in the green energy transition.
Since the need to reduce carbon footprint is driving new technologies, silver’s demand can have exponential growth in the future. 

8. Recyclability and its challenges. 

Another valuable trait of silver is its recyclability. Silver can be recycled from a variety of sources. It can be recycled from e-waste and high-grade jewellery scraps.
Recycled sterling silver is precious silver extracted from used metal products. No purity is lost in the process of extraction. Silver can also be used for industrial scraps and refining processes. Although the recycling of silver contributes to the silver supply, there is a decline in the recycling volumes, particularly in the U.S. jewellery and silverware scrap sector. Efficient recycling of silver can have a positive impact on the supply-demand dynamic of silver. 

9. Geopolitical tensions

If there is one factor that influences everything then it is the geopolitical landscape of the world. The geopolitical climate determines the mood of equity and precious metal markets. With the ongoing international conflicts and shifting economic ties, investors often look for a safe bet. While gold is the one that gets all the attention, silver’s diverse applications along with a relatively lower price point make it an attractive alternative.
With the geopolitical tensions getting intense, silver could once again become a safe-haven asset. 

10. Technological Innovations in mining and production

To solve the supply-demand equation of silver, the mining industry is increasingly investing in technological innovations. Automated systems, AI-driven exploration and sustainable extraction methods are being developed. This would improve the efficiency and the overall rate of supply.
As necessity is the mother of innovation, these advancements would likely mitigate the demand constraint of silver. 

The Vummidi Bangaru Silverware 

With a century-old tradition of crafting fine jewellery, Vummidi Bangaru Jewellers (VBJ) are known for their commitment to authenticity. Founded in 1900, VBJ has earned a reputation for blending traditional charm with modern innovation. Our artworks reflect both cultural heritage and aesthetic style. 

From the heart of South India, we offer the most elegant silverware for every auspicious occasion. At VBJ we value our relationship with our customers more than gold and silver. Since trust is at the core of our brand values, all our products come with a 100% authentic certificate. Our wide range of silverware includes lustrous silver coins and bars, anklets, toe rings and beautiful silver accessories. 

Silver Lining 

The silver market in 2024 depends on many factors, such as the tech revolution, supply-demand dynamics, and macroeconomic influences. With never ending industrial demand driving growth, especially in electronics and green energy sectors, the odds are in favour of the precious metal. Although geopolitical tensions and monetary policies affect the upward trend of the silver market, it has all the potential to give beneficial returns.
As these trends continue to evolve, time will test the real strength of silver and its ability to adapt to both opportunities and obstacles. Making the precious metal sector something to keep an eye on. 

For Latest Updates and Trends Checkout Official Vummidi Bangaru Jewellers Instagram Page

FAQs – Emerging Trends in the US Silver Market

1. What is the outlook for the silver market for the rest of 2024?
The outlook remains positive thanks to high industrial demand. Although the supply-demand equation needs an innovative solution, potential rate cuts and geopolitical factors will help the upward trend of silver in the market. Moreover the cultural inclination of Indians towards silver also contributes to the demand in the jewellery sector.

2. Where is silver produced?
Mexico, Peru and China are the largest silver producers. Mexico accounts for 20% annual global production of silver.

3. What roles does recycling play in the silver supply?
Since silver has high recyclability with most of the purity retained. Hence, recycling also contributes to the supply of silver. Globally only 18% of the silver is recycled. However, the amount of silver recycled has been increasing.

4. How does the U.S. monetary policy influence the silver market?
The interest rate cuts by the Federal Reserve significantly affect the silver market. Since rate cuts boost its appeal as an alternative investment. Silver acts as a protective hedge against currency fluctuations and inflation.