Silver demand to surpass 1 billion ounces this year, hitting a 6-year high

The global silver market will see demand reach 1.29 billion ounces this year, the first time it has breached 1 billion since 2015, according to the latest report from the Silver Institute.

Wednesday, in its interim market report, the Silver Institute said that silver demand had seen broad-based growth through 2021, with industrial demand leading the way.

"The recovery in silver industrial demand from the pandemic will see this segment achieve a new high of 524 million ounces (Moz). In terms of some of the key segments, we estimate that photovoltaic demand will rise by 13% to over 110 Moz, a new high and highlighting silver's key role in the green economy," said analysts at Metals Focus, who conducted the latest research on behalf of the Silver Institute.

The report also noted robust investment demand with interest in physical bullion expected to increase 34% or by 64 million ounces to 263 million ounces, representing a six-year high.