When all of the numbers come in, it looks like silver demand in 2022 will hit a new all-time high!
That’s the news from the Silver Institute, the industry’s trade association. The Institute forecasts total demand to have surged 16 percent in the just-finished year, to a record high of 1.21 billion ounces. It cites industrial use, jewelry and silverware offtake, and physical investment.
Purchases of silver coins and bars in 2022 were forecast to jump 18 percent according to the report, to 329 million ounces. “Support was due to investor fears of high inflation, the Russia-Ukraine war, recessionary concerns, and buying on price dips. The rise was boosted further by a near-doubling of Indian demand, with investors often taking advantage of lower rupee prices.”
- Industrial demand was on course to grow to 539 million ounces mainly because of ongoing vehicle electrification, growing acceptance of 5G technologies, and government commitments to green infrastructure.
- Exchange-traded products, in contrast, were forecast to see the largest annual decline in holdings, totaling 110 million ounces, due in part to silver’s higher volatility than gold, which has made it more vulnerable to profit-taking.
- Silver jewelry and silverware were set to surge by 29% and 72% respectively to 235 million ounces and 73 million ounces in 2022. This has partly been driven by strong inventory replenishment ahead of the Indian festive and wedding season, following heavy stock depletion in 2021.
- The global silver market was forecast to record a second consecutive annual deficit in 2022. At 194 million ounces, this will be a multi-decade high and four times the level seen in 2021.
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