Global demand for silver will hit a record 1.112 million ounces in 2022, up 8% year-on-year, The Silver Institute projected on Wednesday.
Overall, earnings are expected to be broad-based and growth in most key demand components.
So the prospects for silver demand are exceptionally promising.
The rise will be driven by record industrial silver manufacturing, forecast to improve by 5%, as silver use expands in both traditional and critical green technologies.
Also The Silver Institute projects that physical investment demand for silver (consisting of purchases of silver bars and bullion coins) will increase 13% in 2022, reaching a 7-year high.
According to another of his estimates, the use of silver in jewelry and silverware would strengthen in 2022 by 11 and 21%, respectively.
Global demand for silver
Projections indicate that macroeconomic and geopolitical conditions will generally support precious metal prices in the first half of this year.
However, once the pace of US policy rate increases becomes more apparent, the price outlook would become more challenging.
Thus, in 2022, the silver market will build on the solid foundation established last year, when demand for silver increased in all key sectors.
Continuing the trend of 2021, this year’s advantage will be broad-based, with gains expected from most key components of demand.
At the same time, industrial silver mining (accounting for more than half of total silver demand) is forecast to strengthen further, setting a new record in 2022.
Continued improvements in the global economy will give a further boost to silver’s industrial applications, mitigating near-term supply headwinds, chain bottlenecks and challenges in certain regions from the Covid-19 pandemic in course.
Meanwhile, the prospects for the use of silver in the photovoltaic industry remain promising.
Government commitments to carbon neutrality have resulted in a rapid expansion of green energy projects.
As a result, even with continued efforts to reduce silver loads, record PV installations are expected to push silver demand in this segment to an all-time high in 2022.
