Worldwide silver demand from industrial, investment and jewelry
sectors is continuing to climb while global mine supply production is
projected to drop in 2016, according to The
Silver News from the trade organization
suggests coin demand in 2016 will be elevated from 2015 record levels.
In 2015, coin demand reflected an estimated 12 percent of total
physical demand for silver, according to the Institute.
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The projected reduction in silver mining production is the first
since 2002, and is fueled by low silver prices.
"The lower price environment provided little incentive for
producers to invest in expanding capacity at existing
operations," according to The Silver Institute. "Looking
further ahead, many analysts expect global silver mine production to
fall through 2019 as primary silver production from more mature
operations begins to drop."
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