Global demand for silver jewellery will have surged to a record high in 2022, driven by strong recovery in the Indian market, according to the Silver Institute.

Silver jewellery demand is poised to increase by 29 per cent to 235 million ounces (Moz) this year, largely due to an “unprecedented rebound” in Indian demand, which was partly fuelled by strong inventory replenishment ahead of festive and wedding seasons. By comparison, silver jewellery demand reached 202 Moz in 2015 and 2018, and 181.4 Moz in post-lockdown 2021.

“Overall demand for silver is forecast to reach a record total in 2022, driven by new highs for industrial demand, jewellery and silverware offtake and physical investment,” according to key findings reported by Philip Newman, managing director at Metals Focus, and Adam Webb, director of Mine Supply at the Silver Institute’s Interim Silver Market Review in New York.

Global silver demand is expected to reach a new high of 1.21 billion ounces in 2022, up 16 per cent from 2021. Each key segment of demand, except photography, is set to post a new peak.

The Silver Institute however predicted a 194 Moz deficit in the global silver market this year – its largest deficit in decades.