Mine Production = 855.7 m/oz

Physical Demand = 1,033.5 m/oz

Last year, for the fifth year in a row, the silver market recorded another deficit; this time of 26.0 Moz (810 t). Mine supply fell for the second consecutive year by 4% in 2017, following 13 consecutive annual increases prior to 2016. This was a result of years of Capex reductions in combination with supply disruptions, particularly in the Americas. With scrap supply contracting by 1% in combination with net-hedging of 1.4 Moz (44 t), total silver supply fell by 2% to just under one billion ounces.

China will continue to be a major driver in the global silver market for years to come, fueled by continued industrial demand and silver mining activity. China is by far the largest consumer of silver globally, accounting for 18% of global fabrication demand in recent years.

Deep beneath Chancery Lane in central London are the London Silver Vaults, containing the largest retail collection of antique silver in the world.

Industrial demand for silver, fueled by record photovoltaic growth, rose in 2017 for the first time since 2013. A stronger global economy led to healthy demand from the semi-conductor market, resulting in greater silver offtake in electrical and electronics applications as well as brazing alloys and solders. The jewelry and silverware sectors also experienced noteworthy gains in 2017. On the supply side, global mine supply fell for the second consecutive year, following an uninterrupted streak of 13 annual increases prior to 2016. Silver scrap supply, which has been in retreat since 2012, again registered a loss. These factors led to a tightening of the supply/demand balance, contributing to a physical deficit of 26 million ounces (Moz) in 2017, the fifth consecutive annual deficit.

Silver Market Balance

The silver market balance (total supply less total demand) is expected swing into a slight market deficit again this year with both supply and demand reaching above 1 billion ounces. Silver from above ground stocks will have to be drawn down in order to serve the shortfall. That will be a welcome development as above ground stocks rose 9% last year in the face of weak physical demand from the United States and Asia.

Release of Thomson Reuters Interim Silver Market Review

CME raises silver margins by 9.3%

he figures show that 1,984 tons of silver were imported in the first half year – 37% more than in the same period last year and the highest first-half-year silver imports in seven years

Sometime in the coming days, the London Bullion Market Association (LBMA) plans to begin publishing gold and silver vault holding totals covering the network of commercial precious vault operators in London that fall under its remit. This follows an announcement made by the LBMA on 8 May.

The forthcoming LBMA vault data will represent actual physical gold and silver holdings, i.e. real tangible precious metals, as opposed to the intangible and gargantuan paper gold and paper silver trading volumes generated each day in the London precious metals markets.