The Silver Institute: Glistening Particles of Industrial Silver (Redacted)

December 16, 2014

Read The Silver Institute's Industrial Demand Report before you decide if owning silver is right for you. Click for instant access to the report.

Demand for silver for industrial purposes is increasing and the long term outlook for Silver’s use is exciting. The Silver Institute in conjunction with CRU Consulting released a report in early December announcing that industrial applications for silver will increase demand by 27% (142 million ounces) by 2018. 

CRU Consultants stated, "Looking ahead, we are bullish on the industrial applications of silver, which will support the total silver demand in the long run. As technologies develop, a variety of new applications are emerging that have the potential for mass consumption, bringing with them prospects for augmenting industrial silver demand. CRU Consulting forecasts that the industrial applications of silver (excluding photography) will increase from 535 Moz in 2013 to 677 Moz in 2018 with the electrical and electronics sector contributing 66 Moz to this growth."

Industrial applications of silver are the largest component of physical silver demand. For the next four years, silver demand will soar specifically in the following sectors: 

  • Solar sectors, specifically solar photovoltaic cells
  • Manufacture of batteries
  • Printing and silver inks 
  • Silver bearings 
  • Automotive industry 
  • Applications in the medical field and in nanotechnology 
  • Ethylene Oxides (key component in the production of detergents, solvents, plastics, and other organic chemicals) Current annual demand in these applications is roughly 150 million ounces according to the Silver Institute, and demand is expected to increase by 8 million ounces in 2014 alone.

Industrial application of silver accounted for 54% of total physical silver demand in 2013. As China has recently surpassed the US in terms of GDP based on purchasing power parity to now become the largest economy in the world, it's important to know that Asia is experiencing stronger increases for physical silver demand in the electronics and electrical sectors. 

Positive outlook from the research: According to the report, the strongest demand for silver will be for solar panels, which predicts 109 million ounces will be used in solar panels by 2018 (up from 88Moz in 2013). Silver inks will also from 2 Moz in 2013 to 4 Moz in 2018. The Silver Institute also estimates demand growth in electronic and electrical applications will be 6% for 2014 with similar growth for the next two years. This alone represents approximately 14Moz of additional demand annually.

To find out more on industrial demand for silver and where the strongest demand for silver will be, click to instantly download & read the report before you decide if owning silver is right for you. For more information, call Lear Capital at 1-800-576-9355. 

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