Global demand for silver, driven by industrial and physical demand, will hit an eight-year high of 1.025 billion ounces in 2021 amid improving macroeconomic background, message Institute silver.
At the same time, investment in silver coins and bullion will hit a six-year high of 257 million ounces as investors continue to add silver to their investments. The absolute record was registered in 2015 and amounted to more than 300 million ounces.
However, if the global economic recovery from the pandemic is slower than expected, it could put pressure on base metals. This, in turn, can provoke investors to reduce their silver holdings.
Silver supply is also set to rebound from its 2020 pandemic level, reaching double-digit growth this year to 866 million ounces, the highest level since 2016.
While the silver market is expected to have a surplus, it will be the lowest since the scarce 2015.
The Silver Institute is a non-profit, international association with representatives from a wide variety of industries in the silver industry. This includes leading silver mining companies, refiners, bullion suppliers, silverware manufacturers and investment silverware wholesalers. Founded in 1971.