Page 28 - Bullion World Volume 02 Issue 01 May 2022
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Bullion World | Volume 2 | Issue 01 | May 2022
SILVER STORY
Recalling 2021
Silver metal demand regained
post covid pandemic, boosted by
increased industrial activity coupled
with an increase in appetite for the
metal from retail investors.
Silver Supply:
From primary sources
During 2021 global primary mine supply. Silver supply from primary
production – Up by approximately From recycling
Supply of the metal from recycling and secondary mining activity
5.3% year on year to 822.6 Moz in 2022 forecasted at 843.2Moz
(25,587 Tons), registering the witnessed an eight-year high
to touch 173.0Moz (5,382t), (26,226t).
highest increase since 2013.
contributed mainly by industrial
scrap Demand for silver is forecasted
Primary silver mines output: to grow by around 5% year on
increased by approximately 10.2%
Silver Demand year. Major drivers are industrial
year on year basis 229.9Moz fabrication led by higher GDP
(7,152t) Followed by a slump in demand
in 2020, the orders for the white growth, a significant shift towards
metal significantly increased by vehicle electrification, and
By product production
• lead-zinc mines: up by 5.1% to approximately 19% to 1.05Boz geopolitical conflict boosting
investment in renewables (solar
252.8Moz (7,862t) (32,627t). The market has
• Gold mines: up by 5.8% to surpassed pre-pandemic volumes photovoltaics). Post pandemic
demand surge has been seen in the
127.6Moz (3,967t) and has been at its highest since
• Copper mines: a modest 2015. The significant drivers of jewellery and silverware segment.
increase by 0.7% to 208.2Moz the market were coins and bars. As
economies recovered and business On the price front though
(6,476t).
operations resumed full swing, increasing US FED interest
industrial fabrication demand rates should be watched for its
increased by approximately 9.3% to impact on prices, several positive
508.2Moz (15,807t) highest since and supporting factors would
2010. Factors that contributed to overshadow the impact of Fed
the surge in demand are listed interest rates. It is forecasted the
below extent of price impact would be
limited to around 5%
• Surge in consumer electronics
• Investment in 5G infrastructure Logistics a critical factor: Strict
• Increase in green economy border movement controls,
from solar photovoltaics lockdowns, restrictions on air cargo
movement post-Russia – Ukraine
What’s ion stake for 2022 conflict, China’s Zero COVID
Project ramp-ups and incremental strategy would impact the global
output gains in established mines supply chain and logistics this
and a surge in industrial recycling year, in turn, impact the industrial
will result in a 3% surge in metal demand for the white metal.
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