In 2024, the silver deficit will be the second highest on record behind 2022 as industrial demand reaches a new high, according to the Silver Institute’s latest World Silver Survey. “Robust gains from PV applications and a decent performance in other segments are expected to see industrial demand reach a new all-time record,” says Metals Focus, producer of the latest Silver Survey. “Crucially, supply will remain little changed, with a marginal decline forecast for 2024. This will lead to a 17 per cent rise in the market deficit to the second-highest on record.” By Stockhead

Precious metals consultancy Metals Focus’ new ‘Platinum Group Metals (PGM) Focus 2024’ report, which offers a comprehensive analysis of the PGM industry, indicates that the rest of the year will be defined by persistent supply constraints, coupled with robust demand, leading to another year of deficits across platinum, palladium and rhodium. “However, high inventories will [also] weigh on prices,” Metals Focus PGM director Wilma Swarts says. By Darren Parker for Creamer Media’s Mining Weekly

Average prices for platinum, palladium and rhodium are expected to fall this year compared with 2023 despite another year of structural deficit for all the three metals of the group, consultancy Metals Focus said on Monday. The basket price of the platinum group metals (PGMs), which are chiefly used in vehicle exhausts to neutralise harmful engine emissions, slumped in 2023 due to worries that rising market share of PGMs-free, battery-powered electric vehicles (BEVs) would reduce demand in future. By Polina Devitt for Reuters

In their weekly note published Thursday, analysts at Metals Focus said that the eventual monetary policy easing from the Federal Reserve will drive gold prices higher in the second half of the year. “Later this year, we expect prices will rise again, with a new all-time high likely,” said Neil Meader, Director of Gold and Silver at Metals Focus. “After all, the recent $2,450 peak is lower, in real terms, than the 1980 one, which would have been around $3,000 in today’s prices.” By Neils Christensen for Kitco News

Amid today’s “increasingly favourable price environment…additional supply [will start] coming on-stream in the next two years,” say specialist analysts Metals Focus – the consultancy behind the gold supply and demand trends’ data published this week by the WGC – “primarily driven by North America.” Back in the first quarter of 2024, “Increases [in the second-hand gold flow] were seen in almost all markets and regions,” says the World Gold Council’s latest report. By BullionVault

For precious metals investors, gold has been the focus. And those physical silver deficits we mentioned? Negated by massive above ground inventories, says Metals Focus. “At end-2023, stocks held in London and exchange registered vaults amounted to nearly 15 months of global supply and there are bullion inventories also held elsewhere,” it says. “This is likely to prevent a physical squeeze from emerging in the short-term, in spite of the robust supply/demand conditions discussed above.” This means investment demand, not physical demand, will likely remain the dominant price driver. By Reuben Adams for Stockhead

Added to continued outflows from gold-backed ETF trust fund products, that saw gold investment selling in North America and Western Europe total more than 84 tonnes between January and March – adding an extra 6.8% to global gold mining and scrap recycling flows on the WGC’s new data, compiled by specialist analysts Metals Focus. By BullionVault

In a recent research report, analysts at Metals Focus noted that historically, Asian investors have sold into rising gold prices; however, this rally has been different as demand for physical bullion has remained strong as prices pushed to record highs above $2,400 an ounce. “Although sharp price gains have weighed on jewellery consumption, bullish price expectations (and a lack of alternative investment options in some countries) have, in fact, helped boost demand for bars and coins and have limited the scale of profit taking in Asia and the Middle East,” the analysts said in a recent report. By Neils Christensen for Kitco News

“The deficit in the silver market helps to provide robust support and a strong floor for the price,” said Philip Newman, managing director at Metals Focus, which produces the annual survey. “The deficit fell by 30 percent last year, but in absolute terms — at 184.3 million ounces — it was still eye-watering. Global supply has been broadly steady at around the 1-billion-ounce mark, while industrial demand did incredibly well with 11 percent growth,” he added. By Giann Liguid for Investing News Network

Gold priced in the UK Pound and the Euro also hit 1-week lows, dipping through £1900 and €2200 respectively. “Given the scale of the rally [in gold prices] since March, a period of price consolidation is hardly surprising,” says specialist consultancy Metals Focus in its latest weekly analysis, noting the precious metal remains strong despite prospects for US interest rates to stay higher for longer. By BullionVault

With demand consistently outpacing supply for the third year in a row, the market faced a structural deficit of 184.3 Moz. The World Silver Survey 2024, released by the Silver Institute, examines key aspects of the 2023 silver market and provides an outlook for this year. It was produced by London-based precious metals consultancy Metals Focus. By Mining Review Africa

“The deficit in the silver market helps to provide robust support and a strong floor for the price,” said Philip Newman, managing director at consultancy Metals Focus, which produced the World Silver Survey for the Silver Institute. “The deficit fell by 30% last year, but in absolute terms – at 184.3 million ounces – it was still eye-watering. Global supply has been broadly steady at around the 1-billion-ounce mark, while industrial demand did incredibly well with 11% growth.” By Polina Devitt, Reuters

On Wednesday, the Silver Institute released its annual World Silver Survey, which was conducted by UK-based research firm Metals Focus. Metals Focus noted that industrial demand continues to dominate the silver market and is expected to hit another record high this year, rising 9% to 710.9 million ounces, propelled by the solar sector as silver demand for Photovoltaic (PV) solar panels rises 20% to 232 million ounces. By Neils Christensen for Kitco News

Analysts see a long tail for PGMs use in traditional internal combustion engines, and a drop in supply as mining becomes less economic has kept prices relatively well supported. But with fellow precious metal gold at all-time highs this year, that’s a disappointing performance. “The PGM sector is facing a shift in which palladium and rhodium will see declining demand with no major alternative demand sector on the forecast horizon,” Wilma Swarts, head of PGMs at consultancy Metals Focus, told Reuters. By Polina Devitt and Ashitha Shivaprasad for Reuters

Young people are skipping “pleasurable consumption” and instead purchasing “asset-style jewelry” such as gold beans for adornment and investments, said Nikos Kavalis, managing director at the London-based consultancy Metals Focus Ltd. However, he cautions that it makes no sense to invest in gold beans — or other gold items — because their price is often 10% to 30% higher than the commodity’s spot price. Investors would be better served by parking money in gold ETFs, he said. By Bloomberg News

Russia’s new silver mine Prognoz, one of two major projects coming online around the world this year, will start selling silver concentrate in the third quarter of 2024, its owner told Reuters on Wednesday. Global silver output from mines is expected to rise by 4% this year to 843 million troy ounces, the highest level in six years, partly due to the commissioning of Prognoz, according to the Silver Institute and consultancy Metals Focus. By Anastasia Lyrchikova and Polina Devitt for Reuters