The demand for silver in the world will present a year-on-year growth of 11% in 2021, the Silver Institute projected this Wednesday.
In an improving macroeconomic context, the main segments of silver demand are expected to increase this year.
Led by investment in industrial and physical silver, silver demand is expected to reach an eight-year high of 1.025 million ounces in 2021.
Also the Silver Institute estimates that physical investment, which covers purchases of silver bullion and bars, will reach a six-year high in 2021 of 257 million ounces (Moz), as investors continue to add silver to their investment holdings.
However, if the global economic recovery from the pandemic turns out to be much slower than expected, this could affect base metal prices.
This, in turn, could encourage investors to reduce their exposure to silver, the Silver Institute said.
All things considered, the Silver Institute remains especially optimistic about the outlook for silver this year, reflected in the following outlook for 2021.
The silver price recovery, which first emerged in 2019, continued last year.
As a result, the annual average price of silver increased from $ 16.19 in 2019 to $ 20.52 last year, an increase of 27% (based on the London Bullion Market Association silver price).
With the onset of the Covid-19 pandemic, the market saw a growing number of countries introduce looser monetary policies.
This helped lower real interest rates and, together with a shift in favor of safe-haven assets, encouraged investors to buy silver and other precious metals.
The first weeks of 2021 have seen a bullish mood for silver.
In early February, a surge in retail investor appetite for silver, driven by social media platforms, pushed the price to an eight-year high of $ 31.10.