The fact that Silver cannot keep pace with gold is explained by the importance of industrial demand, which is developing less dynamically than previously expected, Commerzbank's commodity analyst Carsten Fritsch notes.

Silver demand to dip despite coin and bar interest

"The Silver Institute expects a slight decline to 677 million ounces this year. In addition, demand for industrial applications last year was revised downwards by 20 million to 680 million ounces compared to the forecast in November 2024. Nevertheless, this would still be a record level."

"The stagnation in industrial demand and a decline in demand for jewellery and silverware are expected to cause total Silver demand to fall by 1.4% to 1.15 billion ounces. Slightly higher demand for bars and coins cannot prevent the decline in demand. In the previous year, however, demand for Silver fell twice as much due to the sharp drop in demand for bars and coins."

"With Silver supply increasing slightly at the same time, the supply deficit is expected to narrow to 118 million ounces this year. This would be the fifth consecutive year with a supply deficit, but also the smallest in four years."