Weekly Silver Review: Silver Market Sees Demand Growth In Every Category In 2021

23 Apr 2022 , 02:40 PM

The World Silver Survey 2022, released by the Silver Institute yesterday noted that the global silver market realized growth in every demand category in 2021, marking the first time all key sectors rose in tandem since 1997. Surpassing pre-pandemic volumes, total global silver demand achieved its highest level since 2015, surging 19 percent to 1.05 billion ounces (Boz) last year. Leading the way was an all-time high for silvers use in industrial applications, rising 9 percent to 508.2 million ounces (Moz).

Physical silver investment (sales of silver coins and bars) leaped by 36 percent to 278.7 Moz, its highest level since 2015, as retail investors in North America and Europe, motivated by safe-haven and inflationary concerns, took advantage of periodically lower silver prices to purchase coins and bars.The silver market experienced its first deficit since 2015, at 51.8 Moz, its most significant shortage since 2010.

All categories of silver demand strengthened last year, taking the annual total to 1.05 Boz, an impressive 19 percent gain over 2020. Industrial fabrication rose by 9 percent to 508.2 Moz despite global logistical challenges. Silvers use in photovoltaics increased 13 percent to 113.7 Moz as global solar installations grew, while electronic and electrical demand overall rose by 9 percent to 330 Moz.

Silvers use in photography grew in 2021 by 3 percent to 28.7 Moz, bucking the long-term trend of decline. Last year, some of the demand recovery came from the medical sector, which battled to work through the backlog of delayed x-rays built up when hospitals were overwhelmed by COVID.

Silver jewelry fabrication jumped by 21 percent in 2021 to 181.4 Moz. On top of soaring consumption, fabricators also benefited from rebuilding stocks, which had fallen in 2020. India paved the way for silver jewelry demand, with a 45 percent jump to 58.7 Moz. Coming off a somewhat disappointing 2020, silverware demand recovered by 32 percent in 2021 to reach 42.7 Moz. India led the world in silverware offtake at 24.4 Moz, followed by Nepal at 4.8 Moz and China at 2.7 Moz.

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