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IPFS News Link • Gold and Silver
Surging Industrial Demand for Silver means Structural Deficit set to Intensify
• BullionstarThis 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'.