Industrial Demand for Silver Rebounding to a New High in 2021 - The Silver Institute
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Industrial Demand for Silver Rebounding to a New High in 2021 - The Silver Institute
Phsical Silver Investment Forecast to Jump by 32% in 2021 for a 6-Year High - (November 17, 2021)
Every key area of silver demand is forecast to rise in 2021, including a record total for industrial demand, despite
ongoing supply chain challenges, reported Philip Newman, Managing Director at Metals Focus, and Adam Webb, Director of Mine Supply,
during the Silver Institute’s Interim Silver Market Review webcast today, which featured historical supply and demand statistics and estimates
for 2021. The following are the key highlights from the presentation:
• With each significant component of silver demand forecast to rise in 2021, global silver demand is set to reach 1.29 billion
ounces, the first time it has exceeded 1 billion ounces since 2015.
• The recovery in silver industrial demand from the pandemic will see this segment achieve a new high of 524 million ounces (Moz). 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. This will also underpin much of the forecast 10% gain in electrical/electro nics
offtake. Finally, brazing alloy & solder demand is set to improve by 10% in 2021, helped by a recovery in housing and
construction, although this will still fall short of pre-pandemic levels.
• Physical investment in 2021 is on course to increase by 32%, or 64 Moz, year-on-year to a six-year high of 263 Moz. The strength
will be driven by the US and India. Building on solid gains last year, US coin and bar demand is expected to surpass 100 Moz for the
first time since 2015. 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.
This article is from The Silver Institute. You can find the details of the article at the following link: https://www.silverinstitute.org/wp-content/uploads/2021/11/SI2021InterimMktPRNov17R.pdf