Interesting article on silver 2 2

[Zebo]

Worldwide demand for silver during calendar year 2022 reached a record high of 1.242 billion ounces, according to World Silver Survey 2023, an in-depth examination of the silver market researched and produced for the Silver Institute by Metals Focus, a London-based independent precious metals conservancy.

Demand was so significant that it resulted in a deficit of 237.7 million ounces for the 2022 calendar year, according to the survey.

Physical investment demand jumped by 22% compared to 2021, silver industrial demand climbed by 5% year to year, while silverware and jewelry jumped 80% and 29%, respectively, according to the survey.

Since 2020, total global demand for silver has risen by 38% as worldwide economies continue to recover from the ravages of the pandemic.

Total silver demand in 2022 reached 1,242,400,000 ounces compared to 1,055,600,000 ounces in 2021. Total supply in 2022 stood at 1,004,700,000 ounces from 1,004,500,000 ounces recorded in 2021.

Investment demand
According to World Silver Survey 2023, silver bar and coin demand worldwide spiked by 22% in 2022 to a new high of 332.9 million ounces.

In the United States, physical silver investment in 2022 climbed 4% to 134 million ounces compared to 129.1 million ounces in 2021.

The sharpest percentage investment increase in 2022 was recorded in India, with a 188% jump to 79.4 million ounces, from 27.6 million in 2021.

The average price per troy ounce for silver, according to the London Bullion Market Association closing spot prices, averaged $21.73 for 2022, $3.41 per ounce, or 13.5%, lower than the 2021 average at $25.14 per ounce.

Supply and mining
“In 2022, global mine production fell marginally, dropping by 0.6% year to year to 822.4 million ounces, according to the survey. “This followed strong growth in the previous year, when production had risen by 5.8% as mines recovered from the disruption caused by the COVID-19 pandemic.

“Last year’s decline was the result of lower byproduct output from lead/zinc mines, particularly in China and Peru.

“Silver production from this source fell by 3.5% year to year to 248.2 million ounces. Partially offsetting this drop was higher silver output from gold and copper mines, which rose by 1.0% to 129.5 million ounces and 0.8% to 212 million ounces respectively.

“Meanwhile, production from primary silver mines was almost flat year-on-year, rising by just 0.1% to 228.2 million ounces.”

2023 outlook
Metals Focus projects in World Silver Survey 2023 that silver this calendar year will continue to be in strong demand in some sectors.

“Although bar and coin demand and jewelry fabrication are expected to fall short of last year’s exceptional levels, both are forecast to remain historically high,” according to the survey. “Supply, by contrast, is expected to achieve only low single-digit gains. As a result, this year will also see another large deficit for silver, amounting to a projected 142.1 million ounces, which would be the second-largest deficit in more than 20 years.

“Adding up the supply shortfalls of 2021-2023, global silver inventories by the end of this year will have fallen by 430.9 million ounces from their end-2020 peak. ... it is equivalent to more than half of this year’s forecasted annual mine production, and more than half of the inventories presently held in London vaults offering custodian services.”

[zadok]

On 5/4/2023 at 5:26 PM, Zebo said:

Worldwide demand for silver during calendar year 2022 reached a record high of 1.242 billion ounces, according to World Silver Survey 2023, an in-depth examination of the silver market researched and produced for the Silver Institute by Metals Focus, a London-based independent precious metals conservancy.

Demand was so significant that it resulted in a deficit of 237.7 million ounces for the 2022 calendar year, according to the survey.

Physical investment demand jumped by 22% compared to 2021, silver industrial demand climbed by 5% year to year, while silverware and jewelry jumped 80% and 29%, respectively, according to the survey.

Since 2020, total global demand for silver has risen by 38% as worldwide economies continue to recover from the ravages of the pandemic.

Total silver demand in 2022 reached 1,242,400,000 ounces compared to 1,055,600,000 ounces in 2021. Total supply in 2022 stood at 1,004,700,000 ounces from 1,004,500,000 ounces recorded in 2021.

Investment demand
According to World Silver Survey 2023, silver bar and coin demand worldwide spiked by 22% in 2022 to a new high of 332.9 million ounces.

In the United States, physical silver investment in 2022 climbed 4% to 134 million ounces compared to 129.1 million ounces in 2021.

The sharpest percentage investment increase in 2022 was recorded in India, with a 188% jump to 79.4 million ounces, from 27.6 million in 2021.

The average price per troy ounce for silver, according to the London Bullion Market Association closing spot prices, averaged $21.73 for 2022, $3.41 per ounce, or 13.5%, lower than the 2021 average at $25.14 per ounce.

Supply and mining
“In 2022, global mine production fell marginally, dropping by 0.6% year to year to 822.4 million ounces, according to the survey. “This followed strong growth in the previous year, when production had risen by 5.8% as mines recovered from the disruption caused by the COVID-19 pandemic.

“Last year’s decline was the result of lower byproduct output from lead/zinc mines, particularly in China and Peru.

“Silver production from this source fell by 3.5% year to year to 248.2 million ounces. Partially offsetting this drop was higher silver output from gold and copper mines, which rose by 1.0% to 129.5 million ounces and 0.8% to 212 million ounces respectively.

“Meanwhile, production from primary silver mines was almost flat year-on-year, rising by just 0.1% to 228.2 million ounces.”

2023 outlook
Metals Focus projects in World Silver Survey 2023 that silver this calendar year will continue to be in strong demand in some sectors.

“Although bar and coin demand and jewelry fabrication are expected to fall short of last year’s exceptional levels, both are forecast to remain historically high,” according to the survey. “Supply, by contrast, is expected to achieve only low single-digit gains. As a result, this year will also see another large deficit for silver, amounting to a projected 142.1 million ounces, which would be the second-largest deficit in more than 20 years.

“Adding up the supply shortfalls of 2021-2023, global silver inventories by the end of this year will have fallen by 430.9 million ounces from their end-2020 peak. ... it is equivalent to more than half of this year’s forecasted annual mine production, and more than half of the inventories presently held in London vaults offering custodian services.”

...i didnt mean to buy so much last year, ill try to do better this year....

[Henri Charriere]

On 5/4/2023 at 6:34 PM, zadok said:

...i didnt mean to buy so much last year, ill try to do better this year....

"Hey, hey... the Duke Brothers are trying to corner the market!"  . (from Trading Places, 1983, starring Eddie Murphy and Dan Ackroyd)

[RWB]

The topics Demand and Supply are not treated comparably. Supply seems to ignore non-mining sources, while Demand includes all uses. If correct, this invalidates the report and its conclusions.

[Henri Charriere]

On 5/6/2023 at 11:00 AM, RWB said:

The topics Demand and Supply are not treated comparably. Supply seems to ignore non-mining sources, while Demand includes all uses. If correct, this invalidates the report and its conclusions.

Maybe we should find out what Metals Focus paid the World Silver Survey for their presumably impartial research.  You know what they say, You get what you pay for...

[RWB]

On 5/6/2023 at 11:26 AM, Henri Charriere said:

Maybe we should find out what Metals Focus paid the World Silver Survey for their presumably impartial research.  You know what they say, You get what you pay for...

Now, now.... Let's not bring in Clarence Thomas....

[MorganMan]

On 5/6/2023 at 4:52 PM, RWB said:

Now, now.... Let's not bring in Clarence Thomas....

How about let's not do politics in a coin thread. 

[GoldFinger1969]

On 5/6/2023 at 11:26 AM, Henri Charriere said:

Maybe we should find out what Metals Focus paid the World Silver Survey for their presumably impartial research.  You know what they say, You get what you pay for...

As long as the data points are accurate, the conclusions really don't matter.  

The Big Picture as I see it is that demand sourced for India and other countries who in the past didn't consume much continue to grow.  This is a theme I hit with gold, focusing only on India (noting that ther are other Asian countries, Africa, and South/Central America that are also increasing their consumption).

[World Colonial]

On 5/7/2023 at 12:32 PM, GoldFinger1969 said:

As long as the data points are accurate, the conclusions really don't matter.  

The Big Picture as I see it is that demand sourced for India and other countries who in the past didn't consume much continue to grow.  This is a theme I hit with gold, focusing only on India (noting that ther are other Asian countries, Africa, and South/Central America that are also increasing their consumption).

India has been one of the biggest silver buyers for a long time.  Nothing new in that.  It's commonly purchased for wedding related gifts, or so I've heard.

[World Colonial]

On 5/6/2023 at 11:00 AM, RWB said:

The topics Demand and Supply are not treated comparably. Supply seems to ignore non-mining sources, while Demand includes all uses. If correct, this invalidates the report and its conclusions.

That's why this rationalization (exactly what it was) in the 80's and 90's didn't change the outcome.

The price can increase or decrease a lot without a corresponding change in the supply.  It can change a lot with essentially no change in supply.  All it takes is buyers willing to pay a lot more.

As an "investment" asset, the price of gold and silver is psychologically determined.  This is true of all asset prices.  With most (not all) goods and services, higher prices = lower demand. That's what is written in economic textbooks, or at least the ones I used and read.

The opposite is true with "investments".  Demand is higher than ever recently, even as practically all asset classes are more expensive versus the past.  Higher prices increase demand.

[VKurtB]

On 5/6/2023 at 10:00 AM, RWB said:

The topics Demand and Supply are not treated comparably. Supply seems to ignore non-mining sources, while Demand includes all uses. If correct, this invalidates the report and its conclusions.

Now HERE, Roger is spot on. Every coin and bar held by a collector, dealer, or investor SHOULD BE, but virtually never is, counted as SUPPLY. 

[VKurtB]

On 5/6/2023 at 9:37 PM, MorganMan said:

How about let's not do politics in a coin thread. 

Only Roger gets free rein to do that; time after time after time after time. 

[RWB]

On 5/6/2023 at 10:37 PM, MorganMan said:

How about let's not do politics in a coin thread. 

Henri mentioned "presumably impartial." Simply a fact. Nothing political unless you consider peanut butter and jelly.

[RWB]

On 5/7/2023 at 12:32 PM, GoldFinger1969 said:

As long as the data points are accurate, the conclusions really don't matter.

Huh....? I don't understand.

[zadok]

On 5/7/2023 at 1:22 PM, VKurtB said:

Now HERE, Roger is spot on. Every coin and bar held by a collector, dealer, or investor SHOULD BE, but virtually never is, counted as SUPPLY. 

...u will have to pry my silver bar from my cold dead fingers...oh thats my gun...well u will have to pry my silver gun from my cold dead fingers then....

[Henri Charriere]

On 5/7/2023 at 1:23 PM, VKurtB said:

Only Roger gets free rein to do that; time after time after time after time. 

No, what many members may have mistaken for my time-outs or unexplained absences were in actuality expulsions and deportations. Is naming a justice of the Supreme Court any more political than the recent comment made parenthetically, ("and my county voted 83% for the Orange Guy.)? I make it a point to review the Chat Board Guidelines regularly. 

Back on Track. 🤣

[VKurtB]

On 5/7/2023 at 5:42 PM, Henri Charriere said:

No, what many members may have mistaken for my time-outs or unexplained absences were in actuality expulsions and deportations. Is naming a justice of the Supreme Court any more political than the recent comment made parenthetically, ("and my county voted 83% for the Orange Guy.)? I make it a point to review the Chat Board Guidelines regularly. 

Back on Track. 🤣

Merely a statement of irrefutable fact, WITHOUT embellishment. As a former County Election Director (Berks County, 2001-2005), such figures are always interesting to me. It also is instructive that there ain’t no ‘We The People”. Which people? Where? And even when? There is now a new national phenomenon going on - moving to where one likes the political environment. 

Edited May 8, 2023 by VKurtB

[ldhair]

And I thought this was a coin forum. Take the political stuff away. We don't need it here. 

[Matt G]

Hi Everyone,

Let's stick to the original topic. The OP provided a good conversation starter.

Steering towards politics will cause the thread to be pulled.

Have a great week everyone!