Silver jewellery set
Silver jewellery demand is expected to rebound in 2021, albeit lower than pre-coronavirus levels, as improving macroeconomic fundamentals continue to point to recovery, latest data from the Silver Institute revealed.
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, according to the institute.
“The outlook for silver demand is bright, thereby recovering all losses sustained in 2020. This reflects expected gains in the critical segments of industrial demand, physical investment, jewellery and silverware fabrication,” it continued.
Specifically, global jewellery demand is forecast to rebound to 174 million ounces (Moz) but remain below pre-Covid-19 levels. According to the Silver Institute, this reflects to a large extent only a modest recovery in India, where demand will be affected by high and volatile rupee silver prices.
Silver mine production meanwhile is seen to achieve a double-digit gain to 866 Moz in 2021 – its highest total since 2016. Majority of mines affected by Covid-19 restrictions have resumed operations. Growth will also be driven by higher output from primary silver mines and by new projects in Mexico and Australia.
The Silver Institute-commissioned Silver Jewelry Report earlier said silver demand for jewellery production is likely to grow by 13 per cent this year, following an anticipated 23 per cent decline in 2020 due to the coronavirus pandemic and higher silver prices.