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Physical Investment Expected to Hit a Six-Year High   Against an improving macroeconomic backdrop, the main segments of silver demand are expected to rise this year. Led by industrial and physical silver investment, global silver demand is expected to achieve an eight-year high of 1.025 billion ounces in 2021.   Physical investment, which covers silver bullion coin and bar purchases, is expected to achieve a six-year high in 2021 of 257 million ounces (Moz), as investors continue to add silver to their investment holdings.  However, should the global economic recovery from the pandemic prove to be much slower than expected, this could weigh on base metal prices. This in turn could encourage investors to reduce their exposure to silver. On balance though, the Silver Institute remains especially optimistic about silver’s prospects for this year, reflected in the following insights for 2021.   Silver Price and Investment: The recovery in the silver price, which firs...

Is a bull market for silver prices, a driving force! Metal Focus said, if you were a mining company, it is silver jewelry’s net call on the bullion market that is potentially of great interest. By net call, we mean jewelry fabrication less the recycling of old jewelry (this excludes process/production scrap). Time to time Silver Institute makes such call.   Silver jewelry’s net demand has risen more strongly than has the headline number.  To be precise, from a low in 2011, net demand by 2019 had grown by an impressive 51%, whereas jewelry fabrication on a gross basis had increased by a less heady 23%.  This year however, net fabrication is expected to fall by 25% and so by a little more than the gross decline of 23%. Looking at the chart in more detail, the comparatively flat nature of silver jewelry recycling may be surprising.   A key reason for this is that much of silver jewelry’s sales are in Western countries, where high mark-ups and low prices per piece mean c...