Silver Institute's Michael DiRienzo says there is plenty of room for the metal's prices to rise

Silver prices have been on the rise in 2023, with a 7 percent increase in the first five months of the year. This upswing in prices is largely attributed to low inventories with the COMEX and London Bullion Market Association. However, despite this positive trend, experts are concerned about a potential dip in demand for silver.

Michael DiRienzo, Executive Director at The Silver Institute, believes that silver prices have plenty of room to rise. However, it will be challenging for demand to match the record levels seen in 2022, when silver demand hit 1.24 billion ounces. Nonetheless, DiRienzo anticipates a 4 percent growth in terms of industrial demand, and 3 percent demand growth from electronics and electrical sectors.

Speaking to CNBC-TV18, DiRienzo said, "In terms of the price, I think there is a lot more room to rise. However in terms of demand, last year was a record year with 1.24 billion ounces of silver demand. So it is going to be hard to get to that level. We are calling for a small decrease in demand but even so the numbers are going to be quite strong when you look at a 5 year step back. So 2023 is going to be another good year for silver."

The strength of silver ETFs in India is particularly noteworthy, with physical silver demand expected to pick up during the festive season. Additionally, DiRienzo also anticipates a 2 percent increase in mines supply. However despite this he expects 2023 to be the third year of deficit supply.

It is interesting to note that India imported a record amount of silver last year, with many people buying the metal as a form of investment, jewellery, or even silverware. This trend is indicative of the growing interest in silver as a valuable asset, particularly in emerging markets like India.