This is a problem since when silver demand is greater than silver supply, the extra demand (deficit) must be met by eating into the world's finite and limited above-ground silver stockpiles.

This silver deficit has been so persistent and systemic that it is being described by the Silver Institute as a 'structural deficit' i.e. a prolonged deficit that is due to underlying 'structural' factors (technological advances and a sharply growing industrial demand), in an environment where supply (mine production and recycling) is unable to adjust upwards to keep pace with demand.

The Silver Institute is a Washington D.C. headquartered trade association that can be likened to the silver industry's equivalent of the World Gold Council. The

s of the Silver Institute are predominantly silver mining companies and refiners. The Silver Institute's silver supply / demand data is collected and calculated by London based precious metals consultancy 'Metals Focus'.