Is A Silver "Deficit" The Same As A Shortage?

And if so, does that mean a price spike is imminent?

The Silver Institute just published some supply/demand numbers that, at first glance, are about as bullish as it’s possible to get for a commodity. Here’s how Reuters covered the story:

Record Demand Pushes Silver Into New Era of Deficits, Silver Institute Says

Global demand for silver rose by 18% last year to a record high of 1.24 billion ounces, creating a huge supply deficit, the Silver Institute said on Wednesday, predicting more shortages in the years to come.

The silver market was undersupplied by 237.7 million ounces in 2022, the institute said in its latest World Silver Survey, calling this "possibly the most significant deficit on record".

It said 2022's undersupply and a 51.1 million ounce shortfall in 2021 had wiped out cumulative surpluses from the previous decade and predicted further undersupply of 142.1 million ounces this year.

"We are moving into a different paradigm for the market, one of ongoing deficits," said Philip Newman at consultants Metals Focus, which prepared the Silver Institute's data.