Australia, Germany, India and the United States are the world’s leading silver investors. Together, these four countries account for about 80% of demand for bars and coins, according to the Silver Institute.
A study by London-based consultancy Metals Focus highlights the volatility of silver investment. Over the past 15 years, demand has fluctuated from a low of 157.2 million ounces in 2017 to a record 337.6 million ounces in 2022. Physical investment accounted for 16% of global demand in both 2017 and 2024, down from a peak of 28% in 2015.
According to a statement released by the Silver Institute, amid rising geopolitical tensions, rising government debt, and growing investor sentiment that silver is undervalued relative to gold, the price of the precious metal has risen 34% year-to-date. Gold has risen 28% and Bitcoin has risen 18%.
Meanwhile, spot silver prices rose above $40 an ounce for the first time since 2011 on September 1.
The United States remains the largest market for silver investment, with retail investors purchasing 1.5 billion ounces between 2010 and 2024, much of which remains in the hands of investors. Demand for newly minted bars and coins is expected to hit a seven-year low in 2025, the report said.
India, which is predominantly the world's second-largest market, has at times overtaken the United States in silver purchases. Between 2010 and 2024, Indian investors accumulated 840 million ounces, mostly in the form of bullion. Even with the rupee at record highs, selling remained limited, reflecting deep-seated bullish sentiment.
Germany came in third, with demand rising sharply during the pandemic and with the start of the 2022 Russian-Ukraine war, but quickly collapsing when the favourable tax regime for non-EU bullion coins ended. Net silver demand fell 80% in two years, but is forecast to rise 25% in 2025 as liquidation becomes easier.
Australia is at the bottom of the list, with demand rising from 3.5 million ounces in 2019 to 20.7 million ounces in 2022, helped by a favourable tax regime and the growing use of silver in retirement accounts. A modest 11% gain is expected this year as inflation eases and investors turn back to the metal. The Silver Institute noted that silver's role as a monetary and industrial metal, along with changing investment patterns, has increased its importance to global markets.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
