Silver bars, 3x 15 kg, 999.0

Positive market trends in silver
Last year, we witnessed a promising upward movement in the silver market. With a silver price of $20 per ounce, it proved to be an attractive long-term perspective. Particularly noteworthy is the fact that silver quickly recovered from a previous decline and recently reached $24 per ounce - a remarkable increase of about 20%.

Placing the silver rally in context
It is crucial to put the recent rally into the right context. Although the current price of silver is commendable, it should be noted that the metal reached a peak of $28.50 per ounce in January 2021. Furthermore, the historical high was $48.60 in 2011.

Why invest in silver?

Diverse industrial applications of silver
Silver is a versatile industrial metal with a continuously expanding range of applications. Its exceptional durability and excellent electrical conductivity make it ideal for coating electrical contacts on circuit boards. Therefore, silver is a crucial component of computers, mobile phones, solar cells, and plasma display panels. In various devices such as televisions, microwave ovens, toys, and keyboards, silver membrane switches play a crucial role. The use of silver also extends to medical devices, bandages, ointments, and water purification systems, where its properties help combat infections and disinfect water.

High demand and record highs
Key industries such as vehicle electrification, power generation, and construction are driving the demand for silver. Furthermore, the jewelry industry heavily relies on silver due to its enhanced durability properties. In 2022, all major silver-dependent categories reached record highs, resulting in a historic total demand of 1.242 billion ounces. Industrial demand increased by 5%, physical investments increased by 22%, and the demand for jewelry and silverware grew by 29% and 80% respectively. Since 2020, global demand has increased by an impressive 38%.

Supply shortages and structural deficit
Interestingly, despite the rising demand, global silver mining production slightly decreased last year, leading to a second consecutive annual structural deficit of 237.7 million ounces in the market. Recycling activity, on the other hand, showed a positive trend, reaching a ten-year high of 180.6 million ounces. However, further increases in recycling might be limited.

Expectations for 2023 and beyond
For the current year, a peak in industrial production is expected, while the demand for silver bars, coins, and jewelry could see a slight decline. Supply growth is expected to be minimal, leading to another significant deficit in the silver market, possibly the second-largest in over two decades. When considering the cumulative supply shortfalls from 2021 to 2023, it is predicted that global silver inventories could decrease by 430.9 million ounces by the end of this year compared to their peak in 2020.