GLOBAL SILVER DEMAND GROWTH: Coin & Bar Take First Place By Wide Margin
For example, the Silver Institute hired CRU Consulting to put a report together on the growth of industrial silver demand until 2018. In the December 2014 Industrial Silver Report, CRU believes global industrial silver demand will increase 27% (from 2013), an additional 142 million ounces (Moz) by 2018.
They show industrial silver consumption (not including photography) increasing in 2014. However, Thomson Reuters GFMS stated in their November 2014 Silver Interim Report that Industrial silver demand is forecasted to decline from 537.7 Moz in 2013, to 529,7 Moz in 2014.
I do not believe the world will increase its industrial silver consumption 142 Moz by 2018. We may see a small increase, and possibly a decline if the world peaks in global oil production in the next few years.
Now, if we look at global silver demand figures over the past decade, we can clearly see where the REAL GROWTH has taken place. In 2004, silver consumption by industrial applications (including photography) was 609 Moz, while coin and bar investment was only 53 Moz.
But, just ten years later, silver consumption by industrial applications declined to 588 Moz, while coin and bar investment demand skyrocketed to 242 Moz. While it’s true that industrial silver consumption declined mainly due to a drop in photography usage, the big winner is still silver bar and coin demand.