Global Demand Expected to Continue Upward Trajectory, Reports Silver Institute’s World Silver Survey 2022 — TradingView News India

Global demand surged 19% to 1.05 billion ounces in 2021, hitting a 6-year high, and is expected to continue its upward trajectory. according to the Silver Institute’s World Silver Survey 2022.

It said demand for silver could reach a record high of 1.112 billion ounces in 2022, adding that despite recent drops, both silver demand and silver price are expected to remain well-supported through 2022, as inflation concerns are at the top of mind for many investors.

Global silver mine production is expected to grow further in 2022, with output forecast to rise by 2.5% y/y to 843.2Moz (26, 226t). The biggest increase is expected to come in Mexico (+15.9Moz, 495t), driven by the rampup of new and recently-commissioned projects, alongside rising production from several established mines.

The report notes that silver production in Canada fell for the second consecutive year, in 2021 dropping by 4.7% y/y to 9.0Moz (279t). The transitioning of Hudbay’s Lalor mine to focus on gold production led to lower output of base metals and associated silver. Operations at Coeur’s Silvertip remained suspended throughout the year after the mine was placed into care and maintenance due to market conditions in February 2020.

Silver mining companies, particularly such as Pan American Silver Corp (PAAS), First Majestic Silver Corp (FR), Hecla Mining Company, and even the big gold miners, like Barrick Gold (ABX, GOLD) and Newmont Corp. (NGT) and exploration companies going into development, like New Pacific Metals Corp (NUAG) will benefit from the increased demand for silver.