Demand for silver will continue to grow for the next decade, far outpacing its growth over the last 10 years, according to the latest research from Oxford Economics.
In a research report conducted on behalf of the Silver Institute, the analysts said that three key pillars of global silver demand – industrial, jewelry and silverware – are expected to see total demand growth of 42% through 2033, effectively double the growth rate over the previous decade, 2014-2023.
The report said that industrial demand will continue to dominate the silver market over the next 10 years with demand from the sector expected to grow by 46%. At the same time, jewelry and silverware demand are forecasted to rise by 34% and 30% respectively. The report notes that these three segments of the silver market account for nearly three-quarters of global demand. Industrial applications alone represent more than 60% of total silver demand.
One interesting observation from the report is how China is expected to play a dominant role in the silver market during the next 10 years. Oxford Economics sees China leading industrial and jewelry demand over the coming decade. Of the forecast growth in the output of sectors that use silver for industrial purposes over the next decade, 51% is predicted to occur in China. The United States is forecast to have a 5% share in the additional output.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
