Global Silver Demand Surged 19% in 2021

(April 2022- The Silver Institute)

Total global Silver demand in 2021 reached its highest level since 2015, surging 19 percent to 1.05 billion ounces (Boz). Driving this significant rise in demand were increases in every key demand category, the first time since 1997 that all key sectors rose together. Fueling the demand surge was industrial applications, rising 9 percent to 508.2 million ounces (Moz), despite logistical challenges relating to COVID-19. Much of this increase resulted from the resumption of industrial operations and the reopening of businesses as economies began to recover from the pandemic. Aiding this demand was strong consumer electronics sales from people continuing to work at home, 5G infrastructure investment, inventory build along the supply pipeline, and rising Silver consumption in the green economy, mainly for photovoltaics, according to the World Silver Survey 2022, released by the Silver Institute.

The Survey was researched and produced for the Silver Institute by Metals Focus, the London-based, independent precious metals consultancy. Silver continued to make inroads in its contribution to green initiatives as use in photovoltaics increased 13 percent to 113.7 Moz. Similarly, electronic and electrical demand overall rose by 9 percent to 330 Moz. Brazing and alloys accounted for 47.7 Moz, representing a 6 percent gain over 2020. Silver jewelry fabrication rose by 21 percent in 2021 to 181.4 Moz with India leading the way with a 45 percent jump to 58.7 Moz. Thailand posted 24.8 Moz, followed by Italy at 20.4 Moz and the United States with 13.2 Moz.

Silver investors continued to push demand for the white metal higher with sales of Silver coins and bars jumping by 36 percent to 278.7 Moz, the highest level since 2015, as retail investors in North America and Europe were motivated by safe-haven and inflationary concerns, and took advantage of periodic Silver price dips to purchase the physical metal. Silver-backed exchange-traded products (ETPs) reached a record 1.13 Boz, a 65 Moz rise. On the supply side, Silver production grew by 5.3 percent in 2021, reaching 822.6 Moz, the most significant annual growth in mining since 2013. Mexico was the number one Silver producer in 2021, followed by China, Peru, Australia, and Poland.

The outlook for Silver demand in 2022 is positive, according to Metals Focus, which forecasts a 5 percent rise in global Silver demand mainly due to increased industrial fabrication. On the supply side, a 3 percent increase in global supply is expected in 2022 due to project ramp-ups and gains in established mines’ output