Physical investments in silver are a significant part of global demand and are gradually gaining more and more weight. Over the past 15 years, the volume of investments in this segment has grown from 157.2 million ounces (4,891 tons) in 2017 to a record high of 337.6 million ounces (1,0501 tons) in 2022, according to a study by The Silver Institute & Metals Focus.
In the face of geopolitical tensions, increased government debt and increased investor perception of the undervaluation of silver, its price has increased by 34% since the beginning of the year, compared with gold, which added 28%, and bitcoin — only 18%.
A distinctive feature is the degree of market concentration. Only four countries — the USA, India, Germany and Australia — account for about 80% of global investments in physical silver, while for gold this figure is about 60% for these same countries.
The United States is traditionally the largest market for investments in physical silver, but India surpassed it in 2018 and 2019, and it looks like the United States will also lose leadership this year, but still the scale of purchases in the United States was staggering. Between 2010 and 2024, retail investors bought a total of 1.5 billion ounces (46.16 thousand tons), which averaged 98.9 million ounces per year (3077 tons). At its peak in 2021-2023, average retail demand was a phenomenal 131.5 million ounces per year (4,091 tons).
One of the obvious drivers of demand in the last decade has been the market for personal — independent retirement accounts (IRAs). Their popularity has greatly increased during this period, but precious metal IRAs still account for a very small share of the total IRA market in the United States.
"This, first of all, suggests that the demand for IRA accounts in precious metals may still grow significantly," experts say.
Another distinctive feature of the physical investment market in the United States until the end of 2023 was the exceptionally low level of reverse sales, and a significant part of the 1.5 billion ounces (46.16 thousand tons) acquired over the past 15 years is still in the portfolios of investors.
Nevertheless, significant volumes of reverse sales were first recorded at the end of 2023, and continued in 2025. As a result, demand for new minted coins and bullion has plummeted and the total volume of retail investment in the United States is likely to fall to a seven-year low by the end of 2025.
INDIA The country has a long tradition of owning physical silver, usually in the form of bullion. Investments in silver bars and coins have gained popularity as an affordable alternative to gold.
In India, from 2010 to 2024, the total demand for bullion and coins was 840 million ounces (26.1 thousand tons). Like the United States, these investments are quite stable and reflect typically bullish price trends.
