The Silver Institute released preliminary supply and demand numbers at its Silver Industry Dinner in New York City in November.

Industrial silver demand is projected to rise by 8 percent to a record 632 million ounces.

According to the Silver Institute, investment in photovoltaics, power grid and 5G networks, growth in consumer electronics, and rising vehicle production all helped drive industrial demand higher.

Industrial silver demand will be offset by lower physical investment demand. Silver coin and silver bar demand is projected to drop by 21 percent to 263 million ounces after setting a record in 2022. This is primarily due to a big drop in silver investment in India and Germany. Record-high local silver prices in India drove profit-taking throughout most of the year. In Germany, a Value Added Tax hike on some silver coins at the start of 2023 dampened investor enthusiasm.