The world is on the brink of a major silver supply shortage this year.
By the end of 2022, it is anticipated that the demand for silver will have increased by a record 16 percent over the previous year, reaching a new record high of 1.2 billion ounces from industrial consumers, jewelry and home goods producers, and retail investors.
The agency points out that one of the main factors boosting the demand for silver is the surge in consumption by automakers, which is rising as more electronics are being used in automobiles. Demand is also being impacted by the widespread adoption of 5G technologies and the global push toward renewable energy. For instance, manufacturers of solar panels are hoarding silver.
The Silver Institute forecast a deficit of 194 million ounces this year, up from 48 million ounces in 2021.
Due primarily to financial investors selling silver in response to rising US bond yields and a strengthening dollar, silver prices have fallen roughly 10% this year to $21 per ounce.
There are rumors going around that silver dealers across the nation are rapidly running out of silver. Orders for coins, bars, and junk silver are being held up for months.
Worldwide silver supplies are at their lowest points in 200 years and continuing to decline. Less than 200 million ounces of above-ground silver reserves are currently available.
According to Van Simmons, president of David Hall Rare Coins:
There is an acute shortage of physical silver available at this time. The U.S. Mint is out of the Silver Eagles…[and] silver bars in the 100 ounce size are unavailable at this time. In 30 years I have never seen that.
David Hall, Rare Coins
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