{"id":427796,"date":"2018-04-13T03:30:46","date_gmt":"2018-04-13T07:30:46","guid":{"rendered":"https:\/\/goldtadise.com\/?p=427796"},"modified":"2018-04-13T03:58:26","modified_gmt":"2018-04-13T07:58:26","slug":"silver-fundamentals-2","status":"publish","type":"post","link":"https:\/\/goldtadise.com\/?p=427796","title":{"rendered":"Silver fundamentals"},"content":{"rendered":"<p><a href=\"https:\/\/www.silverinstitute.org\/category\/press-releases\/\">Silver Institute Press Releases<\/a>\u00a0\/\u00a0SILVER INDUSTRIAL DEMAND REBOUNDED IN 2017; MINE SUPPLY RECORDED SECOND CONSECUTIVE LOSS<\/p>\n<p>SILVER INDUSTRIAL DEMAND REBOUNDED IN 2017; MINE SUPPLY RECORDED SECOND CONSECUTIVE LOSS<\/p>\n<ul>\n<li>Posted on<em>04 12, 2018<\/em><\/li>\n<\/ul>\n<p>(New York City \u2013 April 12, 2018) Industrial demand for silver, fueled by record photovoltaic growth, rose in 2017 for the first time since 2013.\u00a0 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.\u00a0 The jewelry and silverware sectors also experienced noteworthy gains in 2017.\u00a0 On the supply side, global mine supply fell for the second consecutive year, following an uninterrupted streak of 13 annual increases prior to 2016.\u00a0 Silver scrap supply, which has been in retreat since 2012, again registered a loss.\u00a0 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.<\/p>\n<p>These findings, along with other key segments of the silver market, are discussed in\u00a0<em>World Silver Survey 2018<\/em>, released today by the Silver Institute and produced on its behalf by the GFMS Team at Thomson Reuters (GFMS).<\/p>\n<p><strong><a href=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2018\/04\/S-and-D-1024x741.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-427798\" src=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2018\/04\/S-and-D-1024x741-300x217.jpg\" alt=\"\" width=\"300\" height=\"217\" srcset=\"https:\/\/goldtadise.com\/wp-content\/uploads\/2018\/04\/S-and-D-1024x741-300x217.jpg 300w, https:\/\/goldtadise.com\/wp-content\/uploads\/2018\/04\/S-and-D-1024x741-150x109.jpg 150w, https:\/\/goldtadise.com\/wp-content\/uploads\/2018\/04\/S-and-D-1024x741-800x579.jpg 800w, https:\/\/goldtadise.com\/wp-content\/uploads\/2018\/04\/S-and-D-1024x741.jpg 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Silver Industrial Demand<\/strong><\/p>\n<p>Global silver industrial fabrication demand returned to growth in 2017, increasing 4 percent to 599.0 Moz.\u00a0 This was the first rise in silver industrial fabrication since 2013.\u00a0 This growth was bolstered by another year of impressive photovoltaic demand, rising 19 percent in 2017, the result of a 24 percent increase in global solar panel installations.\u00a0 Brazing alloy and solder silver fabrication recorded a 4 percent annual rise to 57.5 Moz, boosted mainly by solid growth from China and Japan.<\/p>\n<p>The surge in electronics, most notably in semi-conductor fabrication demand, led to the electrical and electronics segments delivering the first annual increase in offtake in this category since 2010, with 242.9 Moz consumed last year.\u00a0 Silver demand for the production of ethylene oxide retreated by a third from 2016 volumes to 6.9 Moz, mostly due to a decline in new installations.\u00a0 GFMS estimates that silver\u2019s use in photography, which fell by 3 percent last year to 44.0 Moz, appears to have stabilized, with renewed interest in various photographic applications utilizing silver, only falling marginally over the last few years.<\/p>\n<p><strong>Silver Jewelry and Silverware Demand<\/strong><\/p>\n<p>Silver jewelry demand moved 2 percent higher in 2017 to 209.1 Moz.\u00a0 India was chiefly responsible for the gain, rising 7 percent over 2016 volumes.\u00a0 Demand also picked up strongly in North America, with the United States posting a 12 percent rise to an all-time high.\u00a0 Global demand for silverware jumped by 12 percent last year to 58.4 Moz, led by a strong recovery in demand from India, which experienced a 19 percent increase.\u00a0 North America also posted solid gains, rising 5 percent to 1.6 Moz.<br \/>\n<strong>World Silver Supply and Demand<\/strong>\u00a0(million ounces)<br \/>\n<em>(totals may not add due to rounding)<\/em><\/p>\n<p><strong>Supply<\/strong><\/p>\n<table width=\"500\">\n<tbody>\n<tr>\n<td width=\"300\"><\/td>\n<td><strong>2016<\/strong><\/td>\n<td><strong>2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Mine Production<\/td>\n<td>888.6<\/td>\n<td>852.1<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Net Government Sales<\/td>\n<td>\u2013<\/td>\n<td>\u2013<\/td>\n<\/tr>\n<tr>\n<td width=\"230\">Scrap<\/td>\n<td>139.7<\/td>\n<td>138.1<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Net\u00a0Hedging Supply<\/td>\n<td>-18.9<\/td>\n<td>1.4<\/td>\n<\/tr>\n<tr>\n<td width=\"300\"><strong>Total Supply<\/strong><\/td>\n<td><strong>1,009.4<\/strong><\/td>\n<td><strong>991.6<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Demand<\/strong><\/p>\n<table width=\"500\">\n<tbody>\n<tr>\n<td width=\"300\"><\/td>\n<td><strong>2016<\/strong><\/td>\n<td><strong>2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Jewelry<\/td>\n<td>205.0<\/td>\n<td>209.1<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Coins &amp; Bars<\/td>\n<td>207.8<\/td>\n<td>151.1<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Silverware<\/td>\n<td>52.4<\/td>\n<td>58.4<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Industrial Fabrication<\/td>\n<td>576.8<\/td>\n<td>599.0<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">\u2026of which Electrical &amp; Electronics<\/td>\n<td>233.9<\/td>\n<td>242.9<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">\u2026of which Brazing Alloys &amp; Solders<\/td>\n<td>55.3<\/td>\n<td>57.5<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">\u2026 of which Photography<\/td>\n<td>45.2<\/td>\n<td>44.0<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">\u2026 of which Photovoltaic*<\/td>\n<td>79.3<\/td>\n<td>94.1<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">\u2026 of which Ethylene Oxide<\/td>\n<td>10.2<\/td>\n<td>6.9<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">\u2026 of which Other Industrial*<\/td>\n<td>152.9<\/td>\n<td>153.7<\/td>\n<\/tr>\n<tr>\n<td width=\"300\"><strong>Physical Demand<\/strong><\/td>\n<td><strong>1,041.9<\/strong><\/td>\n<td><strong>1,017.6<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"300\"><strong>\u00a0<\/strong><\/td>\n<td><strong>\u00a0<\/strong><\/td>\n<td><strong>\u00a0<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"300\"><strong>Physical Surplus\/Deficit<\/strong><\/td>\n<td><strong>-32.5<\/strong><\/td>\n<td><strong>-26.0<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"300\">ETP Inventory Build<\/td>\n<td>49.8<\/td>\n<td>2.4<\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Exchange Inventory Build<\/td>\n<td>79.8<\/td>\n<td>6.8<\/td>\n<\/tr>\n<tr>\n<td width=\"300\"><strong>Net Balance<\/strong><\/td>\n<td><strong>-162.1<\/strong><\/td>\n<td><strong>\u00a0 -35.2<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"300\"><strong>\u00a0<\/strong><\/td>\n<td><strong>\u00a0<\/strong><\/td>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"300\">Silver Price, $per oz.<\/td>\n<td>17.14<\/td>\n<td>17.05<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>*Photovoltaic demand included in \u201cOther Industrial\u201d Prior to 2011<\/p>\n<p><strong>Silver Supply<\/strong><\/p>\n<p>Global silver mine production fell by 4.1 percent in 2017, experiencing its second consecutive annual decline to record 852.1 Moz.\u00a0 The decline was mainly credited to a series of supply disruptions across the Americas.\u00a0 Another leading factor in the drop was due to the primary silver and gold sectors, where production fell by a combined 29.4 Moz.\u00a0 Of the key producing countries, Peru and China registered subtle dips, followed by more acute losses in Australia and Argentina.\u00a0 Offsetting those losses was higher output from Mexico, which was once again the world\u2019s top silver producing country, trailed by Peru, China, Russia and Chile.<\/p>\n<p>Supply from primary silver mines decreased by 9 percent in 2017 to contribute 28 percent of total mine supply.\u00a0 The lead\/zinc sector contributed 36 percent of by-product output, followed by copper at 23 percent and gold at 12 percent.<\/p>\n<p>Silver scrap supply fell to 138.1 Moz, marking its sixth successive yearly decline.\u00a0 Lower scrap flows from Asia, mainly China, driven by a lack of incentives from both suppliers and consumers to recycle their valuables, is chiefly responsible for the fall.\u00a0 Supply from the western world was marginally higher, driven by increased volumes from the United States and Europe.<\/p>\n<p>Above-ground stocks rose 3 percent last year.\u00a0 Of the four exchanges that report silver stocks, three saw total silver inventory growth of 2 percent in 2017; COMEX in the United States, the SHFE and the SGE in China.\u00a0 In contrast, silver inventories held at TOCOM declined dramatically by 98 percent, driven by strong industrial demand in Japan.<\/p>\n<p>GFMS reports that government sales of silver were once again absent from the silver market in 2017.\u00a0 Lastly, in the supply category, the delta-adjusted hedge book inched higher by 1.4 Moz, ending last year at 21.5 Moz.<\/p>\n<p><strong>Silver Price and Investment<\/strong><\/p>\n<p>The annual average silver price fell by a slight 0.5 percent to $17.05\/oz last year, with prices trading in a $15.22\/oz \u2013 $18.56\/oz range. \u00a0That said, last year\u2019s average silver price represents an 8.7 percent increase over the average posted just two years ago of $15.68\/oz.<\/p>\n<p>Identifiable investment, which consists of net-physical bar investment, coins and medals purchased, and net-changes to exchange traded product (ETP) holdings, reached 153.5 Moz in 2017 a 40 percent decline from the previous year.\u00a0 This was primarily the result of a 35 percent decline in coin and medal fabrication, led by lower demand in the United States, Canada and China.\u00a0 Physical bar demand slipped by 16 percent last year.<\/p>\n<p>In contrast, total global ETP holdings increased by 2.4 Moz to finish 2017 at 669.8 Moz. \u00a0In value terms, total ETP holdings increased 4 percent to $11.3 billion, as the silver price advanced throughout the year.<\/p>\n<p><strong>About the\u00a0<em>World Silver Survey<\/em>, the Silver Institute and\u00a0<em>Survey<\/em>\u00a0Ordering Information<\/strong><\/p>\n<p>The Silver Institute has published this annual report on the global silver market since 1990, to bring dependable supply and demand statistics to market participants and the public. The 28<sup>th<\/sup>\u00a0edition of the Silver Institute\u2019s\u00a0<em>World Silver Survey\u00a0<\/em>was independently researched and compiled by the GFMS team at Thomson Reuters.\u00a0\u00a0<em>World Silver Survey<\/em>\u00a0<em>2018<\/em>\u00a0was sponsored by 20 companies and organizations from North and South America, Europe and Asia.<\/p>\n<p>Copies of\u00a0<em>World Silver Survey 2018\u00a0<\/em>are available to the media upon request, and a PDF version can be downloaded from the Institute\u2019s website at\u00a0<a href=\"http:\/\/www.silverinstitute.org\/\">www.silverinstitute.org<\/a>.\u00a0 In North America, hard copies may be purchased by the public from the Institute\u2019s website; for copies outside North America, please contact the GFMS team at Thomson Reuters via\u00a0GFMS@thomsonreuters.com.<\/p>\n<p>Here is an interview discussing this press release&#8230;<\/p>\n<p><iframe loading=\"lazy\" title=\"Are We On The Verge Of A Silver Crunch?\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/6yEiv8VbubI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Silver Institute Press Releases\u00a0\/\u00a0SILVER INDUSTRIAL DEMAND REBOUNDED IN 2017; MINE SUPPLY RECORDED SECOND CONSECUTIVE LOSS SILVER INDUSTRIAL DEMAND REBOUNDED IN 2017; MINE SUPPLY RECORDED SECOND CONSECUTIVE LOSS Posted on04 12, 2018 (New York City \u2013 April 12, 2018) Industrial demand &hellip; <a href=\"https:\/\/goldtadise.com\/?p=427796\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2801,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-427796","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts\/427796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/users\/2801"}],"replies":[{"embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=427796"}],"version-history":[{"count":0,"href":"https:\/\/goldtadise.com\/index.php?rest_route=\/wp\/v2\/posts\/427796\/revisions"}],"wp:attachment":[{"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=427796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=427796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldtadise.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=427796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}