Demand for silver reached record levels in 2013, increasing by 13 per cent to 1.08 billion ounces
Silver demand reaches all-time high
Posted May 20, 2014 | By Stephanie Chan • Staff Journalist
A new report has found that silver jewellery sales are continuing to increase in
line with improved consumer confidence, which has contributed to an
all-time high in global physical silver demand.
According to the World Silver Survey 2014, total world demand for physical silver increased by 13 per cent from 954 million ounces (27 million kilograms) in 2012 to 1.08 billion ounces in 2013.
The increased demand was primarily attributed to a 76 per cent rise in retail investment in silver bars and coins, coupled with a “sturdy recovery” in silver jewellery and silverware fabrication.
The report stated that the positive results reflected in last year’s jewellery fabrication sector was evidence of the “improved economic outlook” in the industrialised world.
This, in turn, resulted in a lift in consumer confidence and retail sales, and a 10 per cent increase in silver jewellery demand from 181 million ounces in 2012 to 198 million ounces last year.
While demand increased, total supply fell from 1 billion ounces to 978 million ounces. Silver scrap, in particular, experienced the largest drop on record, falling 24 per cent to 192 million ounces – its lowest level since 2001.
In terms of price, silver reached the third highest nominal average price on record in 2013 with an average of US$23.79 (AU$25.4). In what the report described as “a particularly volatile year for the entire precious metals complex”.
In addition, silver mine production increased 3.4 per cent to 820 million ounces.
The World Silver Survey 2014 was published by The Silver Institute, a United States-based international industry association, and independently researched and compiled by the Thomson Reuters GFMS team.