- Schiffgold: Silver demand at record levels
- InvestingHaven: The market for physical silver is historically unbalanced
Schiffgold: Silver demand at record levels
Silver demand is set to reach record levels in 2022, driven by physical investments, industrial demand, and new peaks in jewelry and silverware production, according to the Silver Institute and Schiffgold. Global silver demand is forecasted to hit a new high of 1.21 billion ounces in 2022, representing a 16 percent increase from 2021.Institutional demand for silver has been low due to rising interest rates amid the Federal Reserve's battle against inflation, which has led to a decrease in silver ETF holdings. However, physical silver demand has remained strong, with investment demand expected to rise by 18% this year to 329 million ounces.
According to the article, the growth is fueled by investor fears of high inflation, the war in Ukraine, recession concerns, distrust in government, and purchases as prices decline. The increase has also been driven by a recovery in Indian demand from last year's collapse, with investors often taking advantage of the rupee's lower price.
Signs of this strong demand have been seen in COMEX's rapidly declining silver inventories. Industrial demand accounts for over 60 percent of annual silver usage and is set to reach a new record of 539 million ounces in 2022.
The promotion of green energy has helped boost industrial demand, as silver is increasingly used in the production of solar panels. The electrification of vehicles also adds to demand, as does the rollout of 5G technologies. According to the Silver Institute, demand in these developing markets has helped silver navigate macroeconomic headwinds as the global economy slows.
Demand for silver jewelry is expected to grow by 29 percent, while demand for silverware is projected to increase by 72 percent. Approximately 235 million ounces of silver will be used for jewelry production this year, and 73 million ounces for silverware production.
Read full article in English / 11.21.2022, Schiffgold
InvestingHaven: The physical silver market has historically been out of balance
InvestingHaven predicts that the price of silver will turn upward in the near future. According to them, this strong rise is expected to begin during the year 2023. Silver is anticipated to increase even more than gold. Additionally, the rise in silver prices is supported by an imbalance between supply and demand in the silver markets, which is shaping up to be historically significant.Global silver markets are forecasted to be in deficit for the second consecutive year, representing a decade-high and four times the level compared to 2021. The article examines the different types of demand in the silver markets more closely. Physical investments in 2022 are expected to rise by 18 percent, which would also set a new record.
The situation has been reinforced by investors' fears of high inflation, the war between Russia and Ukraine, recession concerns, distrust in the government, and purchases as prices fall. The rise has also been fueled by demand from India, which has recovered from last year's collapse, and investors have often taken advantage of the lower price of the rupee.
The imbalance in the physical markets is historic and is considered more significant than just a widespread lack of supply. Sooner or later, the price of silver should adjust to this reality, although the physical silver markets may not be the ultimate catalyst for the price of silver, writes InvestingHaven.
Read full article in English / 20.11.2022
