Physical silver inventory is depleting rapidly with a large amount of silver being extracted and locked away.

A report released by the Silver Institute shows that global industrial demand for silver is expected to continue to grow over the next five years due to the increasing demand in the fields of photovoltaics, artificial intelligence, electric vehicles, and others. Data indicates that in 2025, global silver supply will be 32,100 tons, while global silver demand will be 35,700 tons, with industrial use accounting for 60% of total silver demand. Analysis points out that the global silver market has been in a structural deficit for five consecutive years, with physical inventories depleting rapidly. In addition, there is strong demand for silver ETF investments, leading to a large amount of silver being extracted and locked away. The market is facing a real-time supply squeeze, driven not only by hedging but also by increasing demand.