Lacklustre sales in India and China could weigh down on global demand for silver jewellery in 2025 but Western markets could provide support, the Silver Institute said.

In a press release, the Silver Institute said demand for jewellery is expected to decline by 6 per cent as major markets face challenges. India, for instance, will account for the bulk of losses as high local prices could result in a double-digit decline in local demand in 2025.

Chinese demand is also seen to weaken, which can be attributed to cautious spending by consumers on non-essential items.

“By contrast, Western jewellery sales will likely remain resilient, thanks to a price-led shift away from karat gold jewellery. Branded silver jewellery is also expected to perform well, offering additional support,” the institute said.

Overall, global silver demand is expected to remain broadly stable in 2025 at 1.20 billion ounces as gains in industrial applications and retail investment will mitigate weaker jewellery and silverware demand. 

Silver supply 

Total global silver supply is forecast to grow by 3 per cent in 2025 to an 11-year high of 1.05 billion ounces, according to the institute. Silver mine production could reach a seven-year high in 2025, rising by 2 per cent to 844 million ounces. Increased output is anticipated from both existing and new operations in several markets. 

Meanwhile, silver recycling is projected to increase by 5 per cent, with volumes breaching 200 Moz for the first time since 2012. “This year, industrial scrap will be the key growth driver, particularly changeouts in ethylene oxide catalysts. Jewellery and silverware recycling will also rise, reflecting India’s price-led gains,” it noted.