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Since 2014 Silver demand is greater than supply, but still cheaper than gold, why?
The 2014 Reversal
According to the Silver Institute’s World Silver Survey 2015, 2014 marked the first surplus since 2013. Supply rose (mainly from increased mine production and net hedging), while physical demand—and particularly coin and bar purchases—fell.
The Silver Institute.
Why Supply Has Lagged Since
Mining decline: Mine output has predominantly contracted due to maturing deposits, long project lead-times, fluctuating byproduct economics, regulatory hurdles, and underinvestment.
By 2025, production is forecast at around 835 Moz—a 7.2% drop since 2014.
Byproduct vulnerability: Over 70% of silver is produced as a secondary output from metals like copper, zinc, and lead. Weak economics in those markets directly depress silver supply.
Why Demand Has Soared
Industrial boom: The energy transition (think solar photovoltaics), EVs, 5G, and electronics have become massive silver consumers. Solar PV demand alone grew from ~5.6% of total demand in 2015 to over 17% by 2024.
Inelastic industrial needs: Companies must buy silver regardless of price to manufacture essential tech components, making demand resilient even when prices rise.
Inventory Drawdowns & Investor Behavior
Shrinking inventories: Since 2021, over 800 Moz of silver has been pulled from inventories, contributing to sell-out levels of freely traded supply.
ETP inflows & investment demand: Silver-backed exchange-traded products (ETPs) saw 95 million oz of inflows in early 2025 alone, capturing supply into vaults and further tightening availability outside of industrial and speculative channels.
Safe-haven and speculative interest: Geopolitical risks, elevated gold-to-silver ratios (~90–100), and legal changes (like Florida and Texas recognizing silver as legal tender) have reignited investor appetite.
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By ICNThe 2014 Reversal
According to the Silver Institute’s World Silver Survey 2015, 2014 marked the first surplus since 2013. Supply rose (mainly from increased mine production and net hedging), while physical demand—and particularly coin and bar purchases—fell.
The Silver Institute.
Why Supply Has Lagged Since
Mining decline: Mine output has predominantly contracted due to maturing deposits, long project lead-times, fluctuating byproduct economics, regulatory hurdles, and underinvestment.
By 2025, production is forecast at around 835 Moz—a 7.2% drop since 2014.
Byproduct vulnerability: Over 70% of silver is produced as a secondary output from metals like copper, zinc, and lead. Weak economics in those markets directly depress silver supply.
Why Demand Has Soared
Industrial boom: The energy transition (think solar photovoltaics), EVs, 5G, and electronics have become massive silver consumers. Solar PV demand alone grew from ~5.6% of total demand in 2015 to over 17% by 2024.
Inelastic industrial needs: Companies must buy silver regardless of price to manufacture essential tech components, making demand resilient even when prices rise.
Inventory Drawdowns & Investor Behavior
Shrinking inventories: Since 2021, over 800 Moz of silver has been pulled from inventories, contributing to sell-out levels of freely traded supply.
ETP inflows & investment demand: Silver-backed exchange-traded products (ETPs) saw 95 million oz of inflows in early 2025 alone, capturing supply into vaults and further tightening availability outside of industrial and speculative channels.
Safe-haven and speculative interest: Geopolitical risks, elevated gold-to-silver ratios (~90–100), and legal changes (like Florida and Texas recognizing silver as legal tender) have reignited investor appetite.