Demand for silver jewellery is expected to increase by end-2021 as business in key international markets continue to improve post-lockdown, according to the latest data from the Silver Institute.

Silver jewellery demand is seen to rise by 18 per cent to 173 million ounces (Moz) from 146 Moz in 2020. The figure however still lags behind 2019 levels by 13.5 per cent. Overall silver demand is forecast to grow in 2021, including a record total for industrial demand, despite ongoing supply chain challenges.

“Silver jewellery and silverware fabrication are expected to partially recover from 2020’s depressed totals,” the Silver Institute’s Interim Silver Market Review revealed. “Both markets will benefit from a marked upturn in all key countries, especially in India as the economy and consumer sentiment have bounced back more quickly than expected, and as restrictions ended in time for the all-important wedding and festive season.”

“With each significant component of silver demand forecast to rise in 2021, global silver demand is set to reach 1.029 billion ounces, the first time it has exceeded 1 billion ounces since 2015,” the group added.  

Silver production is expected to rise by 6 per cent year on year to 829 Moz. The institute attributed this recovery to resumption of full operations in most mines. Silver prices meanwhile also continued to strengthen. Through to November 10, prices have risen by 28 per cent year on year, following a 27 per cent rise for the annual average price in 2020.