The year of 2013 was marked by increased demand for silver. Jewelry demand rose 10 percent, while total demand for the metal went up by 13 percent. Michael DiRienzo, Executive Director of the Silver Institute based in the United States, told Rough&Polished about current trends in the silver market disclosing the aims pursued by his organization and its prospects.
Please tell us about the Silver Institute, its mission and members.
The Silver Institute is an industry association that is 43 years old, and its chief mission is design programs that will generate more silver demand. We design programs that will encourage the use of silver and beyond that, we also put out statistics and reports on the silver market for whomever, whether that be market participant, government bodies, individual investors and so forth.
Our members represent all aspects of the silver industry. They are miners, refiners, manufacturers of silver-based products, jewelers and wholesalers of silver bullion products.
What is your forecast for physical silver demand, particularly for silver jewelry demand this year? According to the recent survey released by the Silver Institute, total physical silver demand rose by 13 percent, and jewelry demand increased 10 percent in 2013. Will this growth continue in 2014?
I think it will for a number of reasons, which are all outlined in the report. I think 2014 will be just like 2013. Having said that, I am not a forecaster or a mining analyst.
What are the key findings of "World Silver Survey 2014", which reported on the key aspects of the 2013 silver market?
We had more demand across a wide range of sectors. Jewelry grew by 10%, silverware grew by 12%, and overall demand grew. Industrial applications dropped by less than 1%. The story here is strong silver demand, absolutely.
How do you see silver prices in the long term?
We never forecast silver prices. We are a marketing association for silver and serve as the industry’s voice in increasing public understanding of the many values and uses of silver. We let the experts opine about where the silver price is going to go.
Do you think silver is a good investment?
Yes. It has been around for thousands of years. It has been a form of money for thousands of years. It has a stored value. It is a hedge against times of uncertainty. It is a hedge against economic and political uncertainty. It is an easy and convenient method, in which one can invest in precious metals. It is a terrific investment!
What are the future uses of silver that may boost consumption besides a jewelry demand?
Well, there is a lot and it is a good question. There is medical uses, of course. Silver is a natural antibacterial. It is used in bandages in hospitals, in surgical equipment. It is used more and more now in clothing, in textiles, sports equipment and so forth.
Silver is the key ingredient to making all of your electronic products operate, your iPad, your iPhone, your Samsung devices, your computers, your televisions, your lights, your automobiles, your homes.
Silver is integral. It is the best conductor of electricity. It is the best conductor of heat. You can use it for virtually every electronic device. As the world economies grow, the silver will absolutely grow.
Olga Patseva, Editor in Chief of the American Bureau, Rough&Polished
