Page 32 - Bullion World Volume 04 issue 12 December 2024

Bullion World | Volume 4 | Issue 12 | December 2024

its lowest level since 2019. This reflects an absence compounded by higher by-product revenue, helping
of new crises during 2024-to-date, which has even high-cost producers in the 90th percentile to
affected precious metal retail investment across record positive margins. In general, continued high
the board. Physical investment in Europe has also metal prices will offset production costs and larger
weakened, but this year’s decline has been relatively royalty payments, further lowering AISC.
modest following a pronounced fall in 2023. By
contrast, India is expected to enjoy higher bar and • Recycling in 2024 is expected to grow 5% to a
coin sales, thanks to bullish price expectations and a 12-year high. Much of this increase comes from
cut to the import duty on silver bullion. price sensitive sectors, such as a spike in western
silverware scrap. Industrial recycling also edges
• Exchange-traded products are on track for their higher, but growth here is largely related to structural
first annual inflows in three years. Expectations factors.
of Fed rate cuts, periods of dollar weakness and
falling yields have raised silver’s investment appeal. • Overall, with slight growth in both demand and
Investor interest has also benefited from silver’s supply, the global silver market is set to record a
breakout of range bound trading. At end-October, physical deficit in 2024 for the fourth consecutive
global holdings were at their highest since July 2022, year. At 182Moz, this year’s deficit is little changed
up by 78Moz or 8% from year-end-2023. from 2023, and still elevated by historical standards.

• In 2024, global mined silver production is
estimated to rise by 1% y/y to 837Moz. Growth
from Mexico, Chile and the US will outpace lower
output from Peru, Argentina and China. Production
from Mexico is forecast to increase by 10Moz,
equivalent to 5% y/y, to 209Moz. This will be driven
by higher mill throughput and grade at Pan American
Silver’s La Colorada operation, following upgraded
ventilation infrastructure. Output will also be boosted
by a recovery in production from Newmont’s
Peñasquito mine. The average All-in Sustaining
Cost (AISC) for primary silver mines decreased in
H1.24. A slowdown in the rise of input costs was

Source: https://silverinstitute.org/global-industrial-demand-on-track-for-a-new-record-high-in-2024/

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