Strong US jewelry sales drive Silver demand higher and other XAG/USD news

Strong silver jewelry sales in the U.S. are one of the many factors that pushed the silver market to its fourth straight supply deficit in 2024.

This was one of several interesting stories featured in the latest edition of the Silver Institute's bi-monthly Silver News report. 

Based on the survey, 92 percent of retailers are optimistic that silver jewelry sales will continue to grow for the next several years. That's up from 88 percent in 2022.

This robust U.S. silver jewelry demand helped drive global jewelry sales up by 3 percent to 208.7 million ounces in 2024.

Global demand outstripped the silver supply for the fourth consecutive year in '24. The structural market deficit came in at 148.9 million ounces. That drove the four-year market shortfall to 678 million ounces, the equivalent of 10 months of mining supply in 2024.

Silver News also featured several stories involving new uses for silver in technology and industry. 

• A new class of "nano-lubricants" using silver is being developed to lubricate tiny nanoscale devices. A technique developed by Chinese researchers introduces silver nanoparticles to boron nitride nanosheets. According to researchers, "The silver-modified boron nitride nanosheets produce extremely low friction and wear, contributing to the development of lubricants with high load-bearing pressure and low wear rate."
• Scientists in South Korea are working on a more environmentally friendly method for silver plating that doesn't rely on toxic chemicals such as cyanide. Silver plating is a crucial process for producing semiconductors, circuit boards, and other electronic components, as silver is one of the world’s best electrical conductors.
• Doctors can use nanosilver particles to track cancer cells throughout the body. However, the fact that these particles come in many different shapes and sizes complicates this process. Researchers at Oregon State University may have discovered a way to produce nanoparticles with a more uniform size using ultraviolet light combined with oxygen.
• An artist is using silver as his medium. The work consists of a thin copper fabric, connected to an electric current, stretched over a wooden frame. A stainless-steel rod with a fleece cover tip is immersed in a silver electrolyte and used as a brush. When the brush touches the mesh, silver ions are combined with the copper to produce an ‘abstract landscape’ of blue shapes upon a sky-like background.  
• In silver market news, Idaho has repealed its capital gains tax on gold and silver bullion. 

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