Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Global silver demand will rise to 1.029 billion ounces this year, up 15% from 2020 and exceeding a billion ounces for the first time since 2015, the Silver Institute said in a report on Wednesday.
The prediction is a slight downgrade from April, when the institute forecast demand for 2021 at 1.033 billion ounces.
The coronavirus sharply reduced use of silver by manufacturers and jewellers but increased demand from investors who wanted a safe asset to ride out economic turbulence.
This year, with most economies out of lockdowns, demand has risen across the board – from manufacturers of goods including solar panels and electronics to jewellers, makers of silverware and investors in silver bars and coins, the institute said.
It predicted the silver market would be undersupplied by 7 million ounces in 2021, the first deficit since 2015.
Those numbers exclude exchange-traded funds (ETFs) that store silver for investors, since these funds hold wholesale silver bars without remaking them as other users of silver do.
The institute, whose figures are prepared by consultants Metals Focus, said it expected ETF to stockpile less than last year but far more than was typical before the pandemic.
Silver currently trades around $25 an ounce, up from around $16-17 in 2015-19 but down from a high of $30.03 reached in February.
(By Peter Hobson; Editing by Steve Orlofsky)
5 Comments
Benny Boy
Why do mining.com fake a lower number for silver demand in 2021 then what silver institute write in it’s report? Mining claims 1.033 billion Oz while Silver institute: ” With each significant component of silver demand forecast to rise in 2021, global silver demand is set to reach 1.29 billion
ounces, the first time it has exceeded 1 billion ounces since 2015.”
Conspiracy or just incompetent reading of the report? look for yourself https://www.silverinstitute.org/wp-content/uploads/2021/11/SI2021InterimMktPRNov17.pdf
Frik Els
Thanks Benny Boy, there seems to be a discrepancy between the figure given in the text of the press release and the table provided by the Silver Institute in the PDF you link to. The table of annual supply/demand has a figure of 1.029 billion for total demand in 2021 which is what Reuters is quoting here.
Benny Boy
And now the pdf have been removed from Silver Institutes page it seems, not suspicious at all
Benny Boy
Found it, new link if someone else want to read
Benny Boy
https://www.globenewswire.com/en/news-release/2021/11/17/2336647/0/en/Industrial-Demand-for-Silver-Rebounding-to-a-New-High-in-2021.html