Precious Metals

Silver Institute predicts strong demand for metal in 2022

Bullion coin and bar form are among the uses that are expected to drive up demand for silver in 2022.

Images courtesy of Money Metals Exchange and U.S. Mint.

Market analysts for the Silver Institute project record demand for silver during calendar year 2022, expecting industrial uses and investments combined to reach 1.112 billion ounces, an 8% increase over 2021.

According to the trade organization’s forecast released Feb. 9, physical silver investment demand — consisting of silver bar and bullion coin acquisitions — is projected to jump 13% in 2022, achieving a seven-year high. Silver’s use in jewelry and silverware is also expected to climb in 2022 by 11% and 21%, respectively, according to the Silver Institute. 

Total global silver supplies are projected to increase by 7% over 2021 levels, to reach 1.092 billion ounces in 2022.

“After shifting to a market deficit (total supply less than total demand) in 2021 for the first time in six years, the silver market is expected to record a shortfall of 20 million ounces this year,” the Silver Institute reports.

Silver exchange-traded products witnessed a 6% increase to 1.132 billion ounces in 2021.

The overall annual average silver price established by the London Bullion Market Association is forecast for 2022 to be $24.80 per ounce, 1% lower than 2021’s average of $25.14.

The precious metals consultancy, Metals Focus, based in London, is in the process of researching for publication the Silver Institute’s annual report on the international silver market. World Silver Survey 2022 is scheduled for release April 20.

Philip Newman, managing partner for Metals Focus, says silver investment demand has been strongest in bar form, with 40% of the total silver demand in bars.

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