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Silver Supply and Demand

Silver Price

Silver is considered an industrial metal due to its largely industrial uses. During times of economic stability or growth the demand generally rises. During economic uncertain times the demand generally falls. Silver is no longer monetized by most countries via a gold standard.


Silver Supply History

The global silver supply has increased from 955 Moz to 1041 Moz, or 9 percent, between 2005 and 2015. Mine production has grown 640 Moz to 887 Moz, an increase of 39%. This has increased in every consecutive year during this period. Net government sales have significantly reduced during this period and since has been reduced to zero. Scrap supply remained steady at around 200 Moz from 2005 to 2009, and then increased significantly to a peak of 262 Moz in 2011, and since has fallen to reach a low of 146 Moz. Net hedging supply has been volatile during the last 11 years. It has been varying +/- 50 Moz during this period.

    

Source: The Silver Institute - Supply & Demand


Physical Silver Demand History

The global silver demand has increased from 947 Moz to 1071 Moz from 2005 and 2015. Jewelry demand has been steady at around 180 to 190 Moz from 2005 to 2012. It has increased significantly in relative terms to reach a high of 227 Moz in 2015. The demand for coins and bullion has grown significantly. In 2005 coins and bars only made up 51 Moz of the overall demand; in 2015, it made up 292 Moz. The demand for silverware has varied between 40 Moz and 70 Moz. Industrial fabrication has reduced from 649 Moz to 589 Moz, an 9% reduction. A large notable reduction has been photography which has fallen from 160 Moz to 47 Moz between 2005 and 2015. A large notable increase has been in photovoltaics (solar panels).

    

Source: The Silver Institute - Supply & Demand


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ETF and Exchange Silver Demand History

ETF demand was exceptionally high between 2006 and 2010. In 2012 demand from ETFs and exchanges was over 100 Moz. Since 2014, they have been net sellers, albeit small in historical terms and relative terms compared to total supply.

    

Source: The Silver Institute - Supply & Demand


Silver Net Demand History

Silver net demand has exceeded silver supply between 2005 and 2015.

    

Source: The Silver Institute - Supply & Demand