The total demand for silver in 2021 was 896.1 Moz, which marked an increase from 995.4 Moz in the previous year, as per the data published in the survey. However, the supply of this precious metal decreased to 976.2 million ounces, whereas it was 1.019 million ounces in 2020. The majority of the demand for physical silver, i.e., 486.8 million ounces, came from the industrial sector. In comparison, the total silver demand in 2020 was 514.6 Moz. Interestingly, the demand for physical silver witnessed an 8% rise in 2021 to 200.5 Moz, which was the highest it had been in the past four years.
The silver production in 2021 decreased by 5.9% to 784.4 Moz, whereas it was 833.2 million ounces in 2020. However, the supply of recycled silver increased by 7% to 182.1 Moz, up from 170.5 Moz in 2020. As a result, there was a surplus of silver in the market by the end of 2021, amounting to 80.1 million ounces.
The median price of silver in 2021 was $20.55 per ounce, which marked a 27% increase from $16.21 in the previous year, and it was also the highest average price since 2013. According to the Silver Institute, the average metal price is expected to grow by 33% in 2022, reaching $27.30.
Interestingly, the price of silver had already surpassed the aforementioned prediction by Q3 2022, reaching a threshold of $27.71. This has prompted experts to believe that it's plausible and quite intriguing that the $30 mark will be achieved by the end of the year.
The current exponential development of technology has made silver an extremely important part of industrial production. The direct relation to the hi-tech field has made silver even more attractive for investors. Furthermore, it's worth noting that silver is considered a low-risk asset. Compared to other precious metals, it's more accessible as it's cheaper, and thus, even entry-level investors can participate in the market regardless of their budget size.
If you're interested in investing in silver, Orama Estates LLC can help you find the most suitable options based on your needs and capital.
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