Silver demand to breach one billion ounces this year: Silver Institute

The global silver market will see demand reach 1.29 billion ounces this year, according to the latest report from international industry body the Silver Institute.

In its interim market report published yesterday, the Silver Institute said that silver demand had seen broad-based growth through 2021, with industrial demand leading the way.

“The recovery in silver industrial demand from the pandemic will see this segment achieve a new high of 524 million ounces (Moz),” said analysts at Metals Focus, who conducted the latest research on behalf of the Silver Institute.

“In terms of some of the key segments, we estimate that photovoltaic demand will rise by 13% to over 110 Moz, a new high and highlighting silver’s key role in the green economy,” they added.

The report also noted robust investment demand with interest in physical bullion expected to increase 34% to 263 million ounces – a six-year high.

“Growth began with the social media buying frenzy before spreading to more traditional silver investors. Indian demand reflects improved sentiment towards the silver price and a recovering economy. Overall, physical investment in India is forecast to surge almost three-fold this year, having collapsed in 2020,” the analysts said.

Metals Focus said that silver mine production is forecasted to increase by 6% to 829 million ounces, as a result of mines returning to full production rates in 2021 following enforced stoppages during the pandemic last year.