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World Silver Survey 2024

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Survey 2024
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The Silver Institute/ Metals Focus

 MKS PAMP.
Proud sponsors of
World Silver Survey 2024
With a global footprint and over 60 years of experience in the precious metals
Major Funding Companies of The Silver Institute industry, MKS PAMP – part of the MKS PAMP Group – is dedicated to creating a
sustainable future with precious metals products and services. The company
provides financial and physical trading services and operates a state-of-the-art
precious metals refinery and mint in Switzerland. As an industry leader, MKS PAMP
offers the world’s most extensive range of durable, innovative and responsibly
Asahi Refining sourced precious metal products and services. The company builds on leading
artisan savoir-faire and Swiss engineering to manufacture a wide range of products
Coeur Mining, Inc. in all four precious metals and in various forms, and provides precious metals
services such as trading, refining, vaulting and storage, treasury and mine financing.
Endeavour Silver Corp.
Fresnillo plc Still managed by the founding family, MKS PAMP is an advocate for long-term
thinking, responsible sourcing, sustainability and ethics, working closely with

Gatos Silver its stakeholders to set the highest codes of conduct in the industry. MKS PAMP
developed Provenance, a traceability solution that utilizes blockchain to trace
Glencore International AG precious metals along the supply chain and guarantee responsible sourcing
globally. To further its long-term commitment to environmental sustainability, MKS
Hecla Mining Company PAMP announced its SBTi-validated targets for 2030, for scope 1, 2 and 3. MKS
PAMP aims to create value by leveraging its technical expertise, innovations and
Industrias Peñoles, S.A.B. de C.V. global infrastructure to be an indispensable global partner and the most sustainable

Pan American Silver Corp.

organization in the industry.

Wheaton Precious Metals

Front & Back Cover Images: Courtesy of MKS PAMP

 MKS PAMP.
Proud sponsors of
World Silver Survey 2024
With a global footprint and over 60 years of experience in the precious metals
Major Funding Companies of The Silver Institute industry, MKS PAMP – part of the MKS PAMP Group – is dedicated to creating a
sustainable future with precious metals products and services. The company
provides financial and physical trading services and operates a state-of-the-art
precious metals refinery and mint in Switzerland. As an industry leader, MKS PAMP
offers the world’s most extensive range of durable, innovative and responsibly
Asahi Refining sourced precious metal products and services. The company builds on leading
artisan savoir-faire and Swiss engineering to manufacture a wide range of products
Coeur Mining, Inc. in all four precious metals and in various forms, and provides precious metals
services such as trading, refining, vaulting and storage, treasury and mine financing.
Endeavour Silver Corp.
Fresnillo plc Still managed by the founding family, MKS PAMP is an advocate for long-term
thinking, responsible sourcing, sustainability and ethics, working closely with

Gatos Silver its stakeholders to set the highest codes of conduct in the industry. MKS PAMP
developed Provenance, a traceability solution that utilizes blockchain to trace
Glencore International AG precious metals along the supply chain and guarantee responsible sourcing
globally. To further its long-term commitment to environmental sustainability, MKS
Hecla Mining Company PAMP announced its SBTi-validated targets for 2030, for scope 1, 2 and 3. MKS
PAMP aims to create value by leveraging its technical expertise, innovations and
Industrias Peñoles, S.A.B. de C.V. global infrastructure to be an indispensable global partner and the most sustainable

Pan American Silver Corp.

organization in the industry.

Wheaton Precious Metals

Front & Back Cover Images: Courtesy of MKS PAMP

 World Silver Survey 2024

Dear Reader,

The Silver Institute has published the World Silver Survey since 1990. The purpose then, as now, is to provide market participants
and observers a comprehensive look at the global silver market during the preceding year, with an in-depth look at the various
components of silver demand and the areas that contribute to supplying the market with the white metal. Over the past 34 years,
the World Silver Survey has been a trusted source of information about the broader silver market, widely quoted and referenced by
industry, governments, media, and others.

Undertaking research and producing a report of this caliber takes a skilled and experienced team of professionals. Metals Focus, a
leading precious metals consultancy, independently researched and produced this year’s edition of the World Silver Survey; this is
the fifth edition Metals Focus has produced for us. Metals Focus has over 30 staff and consultants in eight locations worldwide and
has high-level contacts in virtually all aspects of the silver industry. Their team’s breadth and depth make them uniquely qualified to
produce this report.

This is my second stint as Chair of the Silver Institute. I pursued a second term for four reasons: First, I strongly believe in the Silver
Institute’s mission of providing reliable information on the silver market with not only this World Silver Survey, but also our Silver
News, Market Trend Reports, which are in-depth reports on subjects about silver, and presentations at conferences around the
world.

Second, silver is an essential and critical metal for the future, especially in green energy applications. Globally, solar is the
fastest growing of all sources of renewable energy with about 440 GW installed in 2023. Because silver is a key component in a
photovoltaic cell, this is one of the fastest growing uses of silver.

Third, when I was last chair of the Silver Institute, investors had limited interest in silver. Since then, investment demand has grown
multifold to all-time highs with investors around the world recognizing the unique value of silver, not just as an essential metal, but
as a safe haven and a store of value.

Fourth, given the supply-demand fundamentals, I believe that the silver price has a strong base and over time will be higher,
probably significantly higher.

I want to thank all our member companies and sponsors of the 2024 edition of the World Silver Survey for their financial support,
which made this publication possible. We are grateful for your generosity and leadership.

We hope that you find this report both interesting and beneficial.

Phillips S. Baker Jr.

Chair of the Silver Institute
President and CEO of Hecla Mining Company
 World Silver Survey 2024

The Major Sponsors of World Silver Survey 2024

Coeur Mining, Inc.

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with four wholly-owned operations: the
Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the
Wharf gold mine in South Dakota. In addition, the Company wholly-owns the Silvertip silver-zinc-lead exploration project in British
Columbia.

Fresnillo plc

Fresnillo plc is the world’s largest primary silver producer and Mexico’s largest gold producer, listed on the London and Mexican
Stock Exchanges under the symbol FRES. Fresnillo plc has eight operating mines, all of them in Mexico - Fresnillo, Saucito,
Juanicipio, Ciénega, Herradura, Soledad-Dipolos1, Noche Buena and San Julián (Veins and Disseminated Ore Body) and four
advanced exploration projects - Orisyvo, Rodeo, Guanajuato and Tajitos as well as a number of other long term exploration
prospects. Fresnillo plc has mining concessions and exploration projects in Mexico, Peru and Chile. Fresnillo plc’s goal is to
maintain the Group’s position as the world’s largest primary silver company and Mexico’s largest gold producer.

1
Operations at Soledad-Dipolos are currently suspended.

Industrias Peñoles, S.A.B. de C.V.

Peñoles is a mining group with integrated operations in smelting and refining non-ferrous metals, and producing chemicals. Peñoles
is the world’s top producer of refined silver, metallic bismuth and sodium sulfate, and the leading Latin American producer of refined
gold and lead. The Company was founded in 1887 and it is part of “Grupo BAL”, a privately held diversified group of independent
Mexican companies. Peñoles’ shares have traded on the Mexican Stock Exchange since 1968 under the ticker PE&OLES. Peñoles
highlights:

• Began operations in 1887 as a mining company.

• Has integrated operations in the areas of exploration, mining, metallurgy and chemicals.
• Listed on the Mexican Stock Exchange since 1968; the stock is included in the IPC index.
• One of the largest net exporters in Mexico’s private sector.
 World Silver Survey 2024

Pan American Silver Corp.

Pan American Silver is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia,
Chile and Argentina. We also own the Escobal mine in Guatemala that is currently not operating, and we hold interests in exploration
and development projects. We have been operating in the Americas for three decades, earning an industry-leading reputation for
sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C.
and our shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “PAAS”.

In 2023, Pan American produced 20.4 million ounces of silver and 882.9 thousand ounces of gold. As at June 30, 2023, proven and
probable silver mineral reserves were approximately 486.8 million ounces and proven and probable gold mineral reserves were
approximately 7.7 million ounces.

Learn more at panamericansilver.com.

Wheaton Precious Metals

Wheaton Precious Metals is the world’s premier precious metals streaming company with the highest-quality portfolio of long-life,
low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk
profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry,
allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently
outperformed gold and silver, as well as other mining investments. In addition, the company is committed to promoting responsible
mining practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable
value through streaming.

NYSE: WPM | TSX: WPM | LSE: WPM

wheatonpm.com
info@wheatonpm.com
 World Silver Survey 2024

World Silver Survey 2024 has also been kindly

supported by the following companies
SPONSORS

Dillon Gage Endeavour Silver Corp.

Gatos Silver Inc. Glencore International AG Hecla Mining Company

Heraeus Metals New York LLC Hochschild Mining plc KGHM Polska Miedź S.A.

MKS PAMP Silver Bullion Pte Ltd Silvercorp Metals Inc.

Sprott TD Securities

CONTRIBUTORS

Asahi Refining MAG Silver

CIBC Capital Markets Tanaka Kikinzoku Kogyo K. K.
International Depository Services Group Valcambi sa
 World Silver Survey 2024

The World Silver Survey has been published annually by The Silver Institute since 1990. Hard copies of previous editions
can be obtained by contacting The Silver Institute at the address and telephone number on the opening page. All previous
editions are available for download at The Silver Institute’s website. For copies outside of North America, contact Metals
Focus at the address on the following page.

ISSN: 978-1-7394228-2-0 (Print)

ISSN: 978-1-7394228-3-7 (Online)
ISBN: 978-1-7394228-2-0 (Print)
ISBN: 978-1-7394228-3-7 (Digital)

This is the thirty-fourth annual edition of the World Silver Survey produced for The Silver Institute. World Silver Survey
2024 was produced by the Metals Focus team. The information contained herein is based in part on the analysis of publicly
available data such as hallmarking series, trade statistics, company reports and other public-domain information. More
importantly, it is also based on a large series of interviews with the industry’s main players, carried out over the year by the
team. This work generates the essential data to allow the compilation of reliable estimates for world supply and demand and
inform the analysis of market structures, and the degree of significance of any changes and developments.

Metals Focus is grateful to the many miners, refiners, bullion dealers, bankers and fabricators throughout the world who have
contributed their time and information to ensuring that the picture of the industry described in the World Silver Survey is as
complete and accurate as possible.

© Copyright April 2024. The Silver Institute and Metals Focus

We (and where relevant, any identified contributors or co-authors) are the owner or the licensee of all intellectual property
rights in this document. This document is protected by copyright laws and treaties around the world. All such rights
are reserved.

No organization or individual is permitted to reproduce or transmit all or part of this document (including without limitation
extracts such as tables and graphs), whether by photocopying or storing in any medium by electronic means or otherwise,
without the written permission of The Silver Institute and Metals Focus. In cases where we have provided our document
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a copy of this document. Additional user licenses may be purchased on request.

Your reproduction, transmission, printing off, copying or downloading (where relevant) of all or part of this document in
breach of these terms may result in civil or criminal actions against you.

While every effort has been made to ensure the accuracy of the information in this document, the content of this document
is provided without any guarantees, conditions or warranties as to its accuracy, completeness or reliability. It is not to be
construed as a solicitation or an offer to buy or sell precious metal, related products, commodities, securities or related
financial instruments. To the extent permitted by law, we, other members of our group of companies and third parties
connected to us hereby expressly exclude:

• All conditions, warranties and other terms which might otherwise be implied by statute, common law or the law
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• Any liability for any direct, indirect or consequential loss or damage incurred by any person or organization
reading or relying on this document including (without limitation) loss of income or revenue, loss of business,
loss of profits contracts, loss of anticipated savings, loss of goodwill and whether caused by tort (including
negligence), breach of contract or otherwise, even if foreseeable.
 World Silver Survey 2024

Metals Focus
World Silver Survey 2024
PRODUCED FOR THE SILVER INSTITUTE
BY THE METALS FOCUS TEAM:

Philip Newman Nikos Kavalis

Neil Meader Sarah Tomlinson
Philip Klapwijk Wilma Swarts
Elvis Chou, Taiwan Chirag Sheth, Mumbai
Yiyi Gao, Shanghai Çağdaş Küçükemiroglu, Istanbul
Harshal Barot, Mumbai Dale Munro
Simon Yau, Hong Kong Peter Ryan
Junlu Liang Michael Bedford
Francesca Rey, Manila Jie Gao, Shanghai
Jacob Smith Tim Wright
Adarsh Diwe, Mumbai Celine Zarate, Manila
Ghananshu Karekar, Mumbai Ayako Furuno

WITH THE SUPPORT OF

Charles de Meester Neelan Patel
Lisa Mitchell Mirian Moreno
Erin Coyle Lynn Bullock

6th Floor, Abbey House, 74-76 St John Street, 1400 I Street, NW, Suite 550,
London, EC1M 4DT Washington, D.C. 20005
Telephone: +44 20 3301 6510 Telephone: +1-202-835-0185
Email: info@metalsfocus.com Email: info@silverinstitute.org
Bloomberg Metals Focus Launch Page: MTFO Website: www.silverinstitute.org
Bloomberg chat: IB MFOCUS
Website: www.metalsfocus.com
 World Silver Survey 2024

Contents
1. Summary 8
Introduction 8 Silver Supply in 2023 10 Silver Demand in 2023 10

2. Market Outlook 13
Introduction 13 Supply Outlook 15 Demand Outlook 16

The Longer-Term Outlook for Silver 17

3. Investment 18
Introduction 18 Outlook 20 Institutional Investor Activity 20
Exchange-Traded Products 22 Physical Investment 22
Focus Box: Silver’s Only Limited Response to Record Deficits 19
Focus Box: Above-Ground Silver Stocks 26

4. Mine Supply 27
Mine Production 27 Primary Silver Production Costs 34 Reserves & Resources 36
Corporate Activity 37 Producer Hedging 37 Silver Streaming 38
Focus Box: The Changing Structure of Silver Mine Supply 33

Recycling
5. 39

Introduction 39 Industrial 39 Jewelry 40 Silverware 40 Photography 40

Bullion Trade
6. 42

Introduction 42 Europe 42 North America 43 Middle East 43

South Asia 44 East Asia 45

Focus Box: India-UAE CEPA and its Impact on the Silver Import Landscape 44

7. Industrial & Photography 46

Industrial Demand 46 Photographic Demand 55

Focus Box: Artificial Intelligence: Its Direct and Indirect Potential Benefits For Silver 51

Focus Box: Power Generation: A Key Component of Electrical/Electronics Demand 52

Focus Box: Understanding Other Industrial Demand 54

8. Jewelry & Silverware 56

Jewelry 56 Silverware 62

Focus Box: Contrasting Styles of Jewelry in the West and India 59

9. Appendices 64

Tables
Silver Supply and Demand 9 Global Recycling Forecast by Region 39
Annual Turnover on Major Commodity Exchanges 20 Recycling by Source 40
Physical Investment Forecast 22 Recycling by Country 41

Physical Investment by Country 24 Global Industrial Demand Forecast 46

Coins & Medals Fabrication 25 Industrial Demand by Country 47

Identifiable Silver Bullion Inventories 26 Breakdown of Industrial Demand 47

Top 20 Producing Countries 28 Electrical & Electronics Demand 48

Silver Mine Production by Source Metal in 2023 28 Brazing Alloys & Solder Demand 49

Top 20 Producing Companies 29 Photographic Demand 55

Mine Production Forecast by Region 29 Global Jewelry Fabrication Forecast 56

Mine Production by Country 30 Jewelry Fabrication by Country 57

Primary Silver Production Costs 34 Global Silverware Fabrication Forecast 62

Hedge Book Composition 37 Silverware Fabrication by Country 63

 Chapter 1: Summary World Silver Survey 2024

Chapter 1
Summary
– The silver market in 2023 saw a deficit for Introduction
a third year in a row and, while down 30%, it For yet another year and the third in a row now, silver demand massively
was still large at 184.3Moz (5,732t). exceeded supply in 2023. While the global market deficit fell by 30% y/y
from last year’s likely all-time-high, at 184.3Moz (5,732t) it was still one of the
– The ongoing deficit conditions was a largest figures on record. Crucially, last year’s deficit coincided with a year in
product of subdued supply plus robust which we experienced sharp declines in bar and coin investment, jewelry and
industrial offtake, which helped offset silverware demand that meant global silver offtake fell overall year-on-year.
losses in other demand areas. The silver market’s deficit conditions have so far been resilient to pressures
from the weaker price elastic elements of demand.
– Despite that, prices were rangebound
for much of 2023 and, even if the annual Underpinning silver’s fundamentals is robust demand from industrial
average was up 7%, silver underperformed applications. These continued to push higher last year, reaching a new all-
gold. The latter benefited from clearer time record, fueled by the remarkable rise in solar demand and in spite of
safe haven interest while silver was hurt by stagnation in some other sectors. Sluggish silver supply, owing to the slight
broader industrial metal weakness. decline in global mine production, was another factor contributing to silver’s
deficit conditions last year.

Importantly, we remain confident that such deficit conditions will remain in

place for the foreseeable future. As we discuss in detail in Chapter 2, our
projections for 2024 see the gap between supply and demand grow by 17%,
thanks to ongoing growth in industrial demand, a recovery in jewelry and
silverware and still stagnant supply from both mine production and recycling.
With further gains in industrial demand likely in the medium term and no
obvious sources of supply growth, we believe the status quo will continue.

So far, silver’s strong physical market conditions have done little to support
Silver Prices & Gold:Silver Ratio*
its price. Although the average rose by 7% y/y in 2023, the price moved
Gold:Silver Ratio US$/oz sideways in general over the year. It has also been arguably disappointing
120 50 that silver has failed to outperform gold during the recent rallies in the latter
metal through to all-time highs. After all silver has often been seen as a high
100
40 beta version of gold. Yet as the yellow metal rallied by over 20% from its
October trough through to end-March, the gold:silver ratio in fact inched up
80
30 and was trading at a historically high level around 90:1.
60
20 In our view, the key challenge silver has been facing are still high above-
40 ground inventories. As the data in the last focus box of Chapter 3 shows,
10 stocks held in London and exchange-registered vaults amounted to nearly
20
15 months of global supply at end-2023 and there are bullion inventories also
0 0 held elsewhere. This has prevented a physical squeeze from emerging in the
1970 1980 1990 2000 2010 2020 market, in spite of the robust supply-demand conditions discussed above.

Gold:Silver Ratio Silver Price

In turn, this has continued to place the fate of the silver price in the hands
* Quarterly averages
of institutional investors. While the macroeconomic backdrop has turned
Source: Bloomberg

8
 World Silver Survey 2024 Chapter 1: Summary

Market Balance positive for precious metals, the focus has centered on gold, owing to its
clearer quasi-monetary attributes, wider acceptance as a safe haven and
Moz US$/oz
central banks’ strong interest in the metal. Furthermore, even if silver’s actual
100 28
Surplus
industrial demand is robust, investor enthusiasm in the broader industrial
50 26
metals complex has been cooled by a sputtering Chinese economy. Lastly,
0 24
rangebound silver prices have encouraged more speculative investors to
-50 22 seek out buoyant alternatives, such as certain tech stocks and bitcoin.
-100 20

-150 18 Still, stocks for the time being may seem plentiful but inventories are by
definition finite. In time, the continued deficits will see them get drawn down
-200 16
and eventually the market will tighten. Already this is starting to happen in
-250 14
Deficit specific markets to an extent. This is most notable in China where in recent
-300 12 years we have typically seen massive local oversupply, huge exports and
2014 2016 2018 2020 2022
local silver prices trading at a deep discount to London. Since late 2023, we
Balance Silver Price
have seen discounts ease and most recently turn into small premiums, and
Source: Metals Focus, Bloomberg exports come under pressure. While it may not happen immediately, silver
prices will thus sooner or later have their time to shine.

Silver Supply and Demand

Year on Year

Million ounces 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F 2023 2024F

Supply
Mine Production 896.8 899.8 863.6 850.6 837.2 783.4 829.0 836.7 830.5 823.5 -1% -1%
Recycling 147.0 145.7 147.2 148.7 148.2 164.3 173.7 176.9 178.6 178.9 1% 0%
Net Hedging Supply 2.2 0.0 0.0 0.0 13.9 8.5 0.0 0.0 0.0 0.0 na na
Net Official Sector Sales 1.1 1.1 1.0 1.2 1.0 1.2 1.5 1.7 1.6 1.5 -6% -9%
Total Supply 1,047.0 1,046.5 1,011.8 1,000.5 1,000.3 957.4 1,004.3 1,015.4 1,010.7 1,003.8 -0.5% -1%

Demand
Industrial (total) 457.1 489.5 526.4 524.2 523.5 509.7 561.3 588.3 654.4 710.9 11% 9%
Electrical & Electronics 272.3 308.9 339.7 331.0 327.3 322.0 351.2 371.3 445.1 485.6 20% 9%
...of which photovoltaics 59.6 81.6 99.3 87.0 74.9 82.8 88.9 118.1 193.5 232.0 64% 20%
Brazing Alloys & Solders 51.1 49.1 50.9 52.0 52.4 47.5 50.5 49.2 50.2 51.8 2% 3%
Other Industrial 133.7 131.5 135.8 141.2 143.8 140.2 159.6 167.8 159.0 173.5 -5% 9%
Photography 38.2 34.7 32.4 31.4 30.7 26.9 27.7 27.5 27.0 26.1 -2% -3%
Jewelry 202.5 189.1 196.2 203.2 201.6 150.9 182.0 234.5 203.1 211.3 -13% 4%
Silverware 58.3 53.5 59.4 67.1 61.3 31.2 40.7 73.5 55.2 58.8 -25% 7%
Net Physical Investment 309.3 212.9 155.8 165.9 187.4 208.1 284.3 337.1 243.1 212.0 -28% -13%
Net Hedging Demand 0.0 12.0 1.1 7.4 0.0 0.0 3.5 17.9 12.2 0.0 -32% na
Total Demand 1,065.4 991.8 971.3 999.2 1,004.4 926.8 1,099.6 1,278.9 1,195.0 1,219.1 -7% 2%

Market Balance -18.4 54.7 40.5 1.3 -4.1 30.6 -95.4 -263.5 -184.3 -215.3 -30% 17%
Net Investment in ETPs -17.1 53.9 7.2 -21.4 83.3 331.1 64.9 -125.8 -42.1 50.0 -67% na
Market Balance less ETPs -1.3 0.8 33.3 22.7 -87.4 -300.5 -160.3 -137.7 -142.2 -265.3 3% 87%
Silver Price (US$/oz, London price) 15.68 17.14 17.05 15.71 16.21 20.55 25.14 21.73 23.35 - 7% na

Source: Metals Focus

9
 Chapter 1: Summary World Silver Survey 2024

Global Supply Silver Supply in 2023

Global mine production fell by 1% y/y to 830.5Moz (25,830t) in 2023. Output
Moz US$/oz was significantly affected by the four month suspension of operations
1,200 28 at Newmont’s Peñasquito in Mexico following strike action. This was
26 compounded by a drop in production from Argentina due to the processing
1,000
24 of lower ore grades at some mines and the closure of Pan American Silver’s
800 Manantial Espejo mine. Primary silver production slipped to 235.2Moz (7,316t)
22
last year. Supply from lead/zinc and copper mines rose by 1.0% to 255.8Moz
600 20
(7,957t) and 3.9% to 221.4Moz (6,885t) respectively. Output from gold mines
18
400 dropped by 12.2% in 2023 to 113.8Moz (3,540t) following the Peñasquito
16
200 suspension.
14
0 12 The strike action at Peñasquito underpinned the first drop in Mexico’s output
2014 2016 2018 2020 2022
since 2020, which fell by 5% y/y to 202.2Moz (6,290t). In addition, lower ore
Mine Production Recycling
grades and some mine closures negatively impacted production in Argentina
Hedging Official Sector
Silver Price (-4.9Moz, 152t), Australia (-3.1Moz, 95t) and Russia (-1.4Moz, 43t). However,
these losses were somewhat mitigated by increased supply from Chile
(+10.1Moz, 314t) as Kinross’ La Coipa continues to ramp-up and output from
Source: Metals Focus, Bloomberg
lead/zinc operations in Bolivia rose (+3.8Moz, 119t).

If only by a marginal 1%, 2023 saw recycling grow for a fourth consecutive
year to a 10-year high of 178.6Moz (5,556t). Much like 2022, the industrial
sector was the primary driver of volumes, which in turn was due to growth in
the recycling of ethylene oxide (EO) catalysts. Jewelry scrap also rose, mainly
due to record high silver prices in India. Similarly, the niche of coin scrap grew
(by 3%). In contrast, photographic recycling saw its structural losses extend
for another year (-7%) while silverware scrap contracted by 2%.

Global Recycling, by Source

After a healthy rise in 2022, net supply from the official sector fell by 6% in
Moz US$/oz 2023. Nonetheless, absolute volumes remained trivial at just 1.6Moz (51t).

200 28

175 26
Silver Demand in 2023
150 24 Following a record 2022, total demand saw a fall in 2023 of 7% to 1,195Moz
125 22 (37,169t). This was still 9% up on the next highest total in our series. The drop
100 20 was mainly led by the price sensitive sectors of physical investment, jewelry

75 18 and silverware while photography saw further structural losses. In sharp

contrast, the industrial sector posted another record high.
50 16

25 14
Offtake from the industrial sector achieved a record high last year, rising 11%
0 12 to 654.4Moz (20,353t). Much like 2022, ongoing structural gains from green
2014 2016 2018 2020 2022
economy applications underpinned these gains, mainly the photovoltaic (PV)
Industrial Jewelry
sector. Higher than expected PV capacity additions, combined with a faster
Photo Silverware
Coin Silver Price adoption of new generation cells, raised electronics & electrical demand by
a significant 20%. While other green-related applications, including power
grid construction and automotive electrification also contributed, some
Source: Metals Focus, Bloomberg

10
 Silver vs Gold Price (London, $/oz) and Key Events in 2023-2024

Fed raises rates Fed raises rates Fed raises rates Fed leaves rates Fed raises rates Fed leaves rates Fed leaves rates Fed leaves rates Fed leaves rates Fed leaves rates
by 0.25% by 0.25% by 0.25% unchanged by 0.25% to unchanged, signals unchanged unchanged unchanged unchanged
and signals a 22-yearhigh likelihood of a hike
28 FOMC Meeting potential pause by year-end 2,300
China Q2 GDP growth came Gold price surges to a record high of $2,288
FOMC Minutes
below expectations and youth
Gold Price US$ Spot jobless rate hit new record high
Silver Price London, US$/oz Silver contract
launched on the IIBX ECB holds rates at record high 2,250
27 Eurozone inflation falls but cuts inflation forecast
US Jan CPI at 6.4 %, a smaller more than economists expected, Copper contango at its widest
decline than expected reaching its lowest level since since 1994 ( a bearish signal)
Russia invaded Ukraine The monthly average premium of
as global industrial activity slows SGE Ag(T+D) over loco-London hit
2,200
Chinese stock market plummets
26 historical high of $2.2/oz in December
to 5-year lows amid a
Bank of England ups deepening property crisis
interest rates by LMEX falls to 6-month The Bank of England holds
0.5 points to 4% low as Chinese and global interest rates at 5.25% 2,150
GDP prospects turn gloomy
25 LME copper hits a six-month high
on China’s re-opening prospects 2,100
ECB raises rates
Hawkish comments to all-time high
from the Fed imply
24 further rate hikes
sending US and Asia 2,050
markets tumbling

23 2,000

Silver Prices, US$/oz

Gold Prices, US$/oz

New mining
legislation in Mexico, China reports 217GW
The Mining Reform, of PV installed 1,950
22 becomes effective capacity in 2023
World Silver Survey 2024

Bitcoin passes $69,000

SolarPower raises US further tightened the control of
to hit new record price
installation forecast chips and semiconductor manufacturing
1,900
by 33% from earlier equipment exports to China.
UBS agrees to buy India to start importing
21 Credit Suisse to 341GW in 2023 India to reimpose the ALMM (Approved
silver bullion from the The US will impose import
for around $3bn UAE through the CEPA duties on solar panel makers List of Models and Manufacturers)
who finish products in SE Asia requirement, a non-tariff barrier to help 1,850
Enel, an Italian energy boost local production of solar modules
company, will invest to avoid tariffs on Chinese-made
India raises import $1bn in a PV cell manufacturing goods, effective from June 2024
20 US economy added 275,000
duty on silver from facility in Inola, Oklahoma First Majestic launches its 100% owned and operated jobs in February, beating expectations
11% to 15% 1,800
minting facility, First Mint LLC in Nevada, USA
Credit Suisse given emergency funding Coeur announces initial production
of $54bn from the Swiss Central Bank from Rochester Expansion
Silicon Valley Bank collapses Israeli strike on Iran’s consulate in Syria
19 after failing to raise capital Newmont suspends operations at Peñasquito in response to union strike action
1,750
Pan American Silver and Pan American Silver suspends production at La Colorada following the theft of concentrate
Germany raises VAT on non-EU silver Agnico Eagle complete
bullion coins to 19%, on par with other acquisition of Yamana Gold India silver bulluion imports
silver investment products Hecla suspends production at Lucky Friday due to a shaft fire hit record high of 71Moz
18 1,700
Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24

NB: Black line indicates daily trading range

11
Chapter 1: Summary

Source: Metals Focus, Bloomberg

 Chapter 1: Summary World Silver Survey 2024

fields, such as consumer electronics, were weighed down by macroeconomic

Global Demand challenges and elevated inventories. Demand for silver in our other industrial
category also remained healthy due mainly to capacity expansions in the
Moz US$/oz
EO sector, while growth in brazing alloys was marginal at best. The overall
1,400 28
total was also helped by limited thrifting and substitution as silver remains
1,200 26
irreplaceable in many end-uses. The biggest increase during 2023 was in
24
1,000 China (+44%), which raised the East Asian total by 25%. Some of this was
22
800 offset by one-off negatives in Europe and by Indian losses.
20
600
18 Photographic demand’s structural decline continued last year, leaving
400
16 offtake at just 27.0Moz (840t). The main driver was the impact of digitization
200 14 on emerging market medical demand. The slide for the total, however, slowed
0 12 to just 2%, chiefly as consumer film sales rose (if from a low base).
2014 2016 2018 2020 2022
After a record high in 2022, silver jewelry fabrication fell by 13% in 2023 to
Industrial Jewelry
Investment Silverware 203.1Moz (6,318t). The losses were concentrated in India where demand
Photography De-Hedging
Silver Price
eased after reaching its highest ever total in 2022. On top of destocking, this
reflected the impact of record high rupee prices on consumer buying due
to the bullion import duty hike and currency depreciation. Excluding India,
Source: Metals Focus, Bloomberg
losses were far more modest at just 3%. This in turn was mainly down to the
weakness of US and European jewelry consumption (due to such drivers as
cost-of-living issues) plus destocking by retailers. This also hurt fabrication
by exporters in East Asia (such as Thailand). Lastly, Chinese demand was hit
by poor consumer sentiment and competition from gold jewelry.

Witnessing a far bigger decline than jewelry, silverware demand in 2023 fell
by 25% to 55.2Moz (1,717t). This was mostly a reflection of an elevated base
in 2022 when fabrication achieved a record high. As with jewelry, losses here
were almost entirely due to South Asia, particularly India owing to high local
Supply/Demand Swings by Sector silver prices.

Moz After five consecutive annual gains, physical investment fell by almost a
75 third last year to a three-year low of 243.1Moz (7,562t). While all major markets
50 saw losses, the decline was particularly acute in Germany (-73%) following

25 the VAT increase at the start of 2023. Most other western markets also saw
steep declines due to such factors as cost-of-living issues and rangebound
0
prices. However, one partial exception was the US where losses were smaller
-25
at 13% due in part to Q1’s local bank failures. This kept the US total at the
-50
sixth highest on record. Elsewhere, physical investment in India was down
-75
a hefty 38% as record high rupee silver prices led to profit-taking, while
-100
fresh investors had only limited windows for bargain hunting. The growing
popularity of ETPs also undermined physical investment in the country.

The global delta-adjusted producer hedge book fell by 12.2Moz (379t) y/y
2023 less 2022
to a multi-decade low of 8.0Moz (250t). Only two producers added to their
hedge books during the year, with others preferring not to replace expired
Source: Metals Focus
contracts.

12
 World Silver Survey 2024 Chapter 2: Market Outlook

Chapter 2
Market Outlook
– The likely easing of US monetary policy Introduction
is expected to drive a notable rally in In contrast to China (whose prospects still unnerve many investors) and
precious metal prices, although short-term Germany (which slipped into recession last year), the past few months have
downside risks persist. been extremely positive for the US economy and its equity markets. Inflation
has been tapering, albeit slowly, unemployment has kept to low levels, job
– Silver will benefit from this, but major price creation has been robust and economic data prints more generally have been
gains and a narrowing of the gold:silver painting a picture of a booming economy. Meanwhile, equities have been
ratio may have to wait until tightness in rallying at a breath-taking pace. The S&P 500 has broken through a series
physical silver markets develop. of all-time highs, boosted by euphoria towards the tech sector, decent Q4
earnings and optimism towards the economy.
– Silver’s market deficit is expected to grow
by 17% in 2024 as supply stagnates and Expectations of US interest rate cuts have also been supportive. After
industrial demand posts another record. undertaking the most aggressive rate hiking cycle in recent history in both
Deficits should also continue, depleting speed and magnitude in 2022 and 2023, the Fed has kept policy interest rates
currently ample inventories. unchanged since last July. At the time of writing in late March, consensus
expectations (for instance rates implied by Fed Funds Futures) are almost
perfectly aligned with FOMC guidance (based on the latest “dot plot” and Fed
officials’ comments). They all point to three interest rate cuts in the second
half of the year, with a target upper bound rate of 4.75%.

All this matters for silver and the wider precious metals complex. The
above conditions have fueled an impressive rally in the gold price, through
a series of all-time highs, that has also boosted silver. Diversification flows,
the kindling of speculative interest in the space and a starting point of light

Interest Rate Expectations & the Fed’s Dot Plot

Implied Fed Fund Rate %

6.00
5.50
5.00
4.50
4.00
3.50
3.00
2.50
2.00
2023 2024 2025 2026 Longer Term

Sep-23 Dec-23 Mar-24 Fed Fund Futures

N.B. The red line denotes rates for each year-end as implied by Fed fund futures on March
22nd 2024. The squares and the gold line denote expectations of median interest rates for
each year-end basis the Fed dot plot from the meeting held in each listed month.
Source: Bloomberg

13
Chapter 2: Market Outlook World Silver Survey 2024

Gold, Silver & Copper Prices positioning (as hedge fund and CTA involvement had been limited until very
recently) have all been supportive of precious metals in recent months.
Index, 3rd January 2023 =100
120
While silver’s absolute performance has been decent, it has been arguably
115 disappointing relative to gold. With speculators coming back into the sector,

110
we had expected that the white metal would outperform. After all, its smaller
overall size does often see silver move in a far more volatile manner than
105
gold. However at the time of writing, the gold:silver ratio has failed to break
100 below 85:1 since the start of the year.
95
In part, this reflects the support that gold has been enjoying in general from
90
official sector buying and from safe haven purchases by high-net-worth
85 investors (linked to both geopolitical and macroeconomic concerns), which
80 silver has not benefited from. A weak bar and coin market, due to market
Jan-23 Jul-23 Jan-24 saturation, the cost of living crisis and many retail investors focusing on
Gold Silver Copper other, “hotter” asset classes, has also taken some toll on the silver price.
That said, fears that Indian investors might liquidate large portions of their
Source: Bloomberg, Metals Focus
recently acquired holdings have for the moment yet to be realized. Finally, the
boost silver received from a recent recovery in base metals prices, copper
in particular, proved to be short-lived, as concerns towards that sector in the
face of a weak Chinese economy persist.

Looking ahead, the recent speculative inflows into gold do create some
downside risks for precious metals in general, and this would include silver.
However, we would expect any such price weakness to be short-lived. Given
the high likelihood of looser US monetary policy, we expect precious metals
investor interest will be healthy in the second half of the year and that this will
ultimately be positive for the silver price.

US Yield Curves Silver’s supply-demand conditions, meanwhile, are expected to have another

Basis points very strong year in 2024. Robust gains from photovoltaic applications and
200 decent performances in other segments are expected to see industrial
demand reach a new all-time record. An uptick in discretionary spending and
150
restocking should boost jewelry and silverware demand, driving y/y rebounds
100 in both demand segments. All this should more than offset the declines we
expect in bar and coin investment, for reasons touched on above. Crucially,
50
supply will continue to stagnate, with a marginal decline forecast for the year.
0 This will drive the market deficit up by 17%, to 215.3Moz (6,695t) for the year.

-50
As per our earlier comments in Chapter 1, as well as our analysis in the
-100 relevant focus box in Chapter 3, there remain ample above-ground silver
inventories in the market. This overhang will likely prevent physical tightness
-150
emerging in the near-term for silver, in spite of such continued deficit
Jan-21 Jan-22 Jan-23 Jan-24
conditions. We do, however, expect that the metal’s strong fundamentals will
5/30Yr Spread 2/10Yr Spread
support its price. This in large part also underpins our expectation that silver
Source: Bloomberg, Metals Focus will outperform gold in the second half of 2024 and into next year.

14
 World Silver Survey 2024 Chapter 2: Market Outlook

Mine Production Forecast Supply Outlook

Global silver mine production is anticipated to fall by a marginal 0.8% to
Moz 823.5Moz (25,613t) in 2024. Our forecast assumes output from Mexico will
1,000 recover (+5.6Moz, 173t) as Peñasquito returns to optimal production after
the strike action of 2023. We also expect supply from the US to increase
800
(+3.5Moz, 110t) as Coeur Mining’s Rochester expansion continues to ramp up,
Hecla’s Lucky Friday resumes full production following its temporary closure
600
in 2023 (following a shaft fire) and the Manh Choh project comes online
400 at Kinross’ Fort Knox. Elsewhere, in Morocco, the expansion at Aya Gold
and Silver’s Zgounder mine is forecast to come on-stream, underpinning
200 a rise 5.5Moz (171t). Construction is 83% complete and on track for Q2.24
commissioning.
0
2014 2016 2018 2020 2022 2024F
N America C&S America Asia Offsetting these increases will be a significant drop in Peru of 17.9Moz (556t).
CIS Europe Oceania Hochschild Mining is awaiting permits for the new resource at Royropata and
Africa has placed Pallancata into care and maintenance in the interim. Lower supply
is also expected from Buenaventura’s El Brocal as the Tajo Norte mine is
Source: Metals Focus suspended. Similar to 2023, output from China is forecast to decline (-3.7Moz,
115t) as silver by-product supply will fall in line with the ongoing drop in lead/
zinc production.

After a marginal increase last year, recycling is set to be virtually flat y/y
in 2024, but it will still be the highest since 2012. Only industrial scrap is
expected to grow due to ongoing drivers such as higher EO receipts. These
gains will almost entirely be offset by losses in all other segments, such as
jewelry and silverware scrap, due in part to limited economic distress. A
further structural drop is also expected for photographic scrap.

Global Supply Forecast

Moz
1,200

1,000

800

600

400

200

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F

Mine Production Recycling Hedging Official Sector

Source: Metals Focus

15
Chapter 2: Market Outlook World Silver Survey 2024

Industrial Fabrication Forecast Demand Outlook

Industrial demand is forecast to rise by 9% this year to a new record high.
Moz Modest growth in the global economy will fuel gains across all segments

800 of demand. As with the last two years, end-uses in the green economy will

700 remain the main drivers of demand along with a resurgence in consumer

600 electronics. That said, as new installations plateau, the notable gains in PV

500
of the last two years may be difficult to replicate. That aside, geopolitics

400
and trade disputes have the potential to disrupt our forecast. The structural

300
decline in photographic demand is also likely to continue in 2024.

200
Jewelry fabrication is expected to recover in 2024 by a modest 4%. India
100
is expected to be the biggest contributor, in part as restocking by retailers
0
2015 2017 2019 2021 2023 resumes. A slight rise is also forecast for the West thanks to growth in
E Asia N America discretionary spending and restocking. That also benefits East Asian
Europe S Asia exporters, but the regional total is curbed by losses in China due to such
Others
challenges as consumers’ preference for gold. We also forecast silverware
demand to rise by 7% this year, again mostly due to India on the back of
Source: Metals Focus ongoing economic strength and rising disposable incomes.

Net physical investment looks set to fall again in 2024 to its lowest since
2020. The biggest drop is likely to be in the US, partly as volumes normalize.
By contrast, Europe could see a partial recovery due to rate cuts by the ECB,
while China should see gains from commemorative coins. Yet healthier gains
are forecast for India as price expectations remain positive. After two years
of outflows, we expect a modest rise of 50Moz (1,555t) for ETPs.

Fewer projects coming on-stream in the near future help lead us to expect
relatively neutral hedging activity in 2024.

Global Demand Forecast

Moz
1,400

1,200

1,000

800

600

400

200

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F
Industrial Photography Jewelry
Silverware Investment De-Hedging

Source: Metals Focus

16
 World Silver Survey 2024 Chapter 2: Market Outlook

Longer-Term Industrial Demand The Longer-Term Outlook for Silver

Silver mine production looks set to rise from 2025, chiefly as projects
Indicators
come on-line, taking the global total to its highest since 2016. Much of these
Index 2020 =100 early gains are expected to come from primary mines (such as Rochester,
600 Uchucchacua, and Zgounder) and from gold operations (for example,

500
Peñasquito and Salares Norte). Further out, production looks likely to fall
as the depletion of reserves outweighs supply from new projects. However,
400 levels should comfortably hold above this year’s output for some time. This is

300 helped by the swing from short-term losses to medium term gains for silver
output as a by-product of copper mining and a similar if smaller shift for
200
supply from lead / zinc mines. The largest production gains over the next five
100 years are expected to come from Canada, Peru, Russia and the US.

0
Recycling should broadly see notable gains in the next few years. Much
2020 2022 2024 2026
comes from jewelry and silverware due to our forecast of higher prices. The
PV Installation
Light Duty Vehicle Production latter also benefits industrial scrap, which will be further lifted by structural
BEVs & Hybrids gains. Photography should supply less as its structural slide continues.

Source: GTM, Metals Focus, LMC Automotive, A GlobalData Total demand should grow notably in the next couple of years, with most of
Company
the gains coming from industrial offtake. Total demand may well then pull
back to around last year’s levels a few years later as our forecast rally hits the
price sensitive areas. The growth expected for industrial fabrication is partly
based on cyclical factors such as overall global GDP growth and gains for the
sectors of specific relevance to silver such as construction and consumer
electronics. Further increases should flow through from structural changes
such as the shift within vehicle production from ICE to BEVs and from
ongoing decarbonization efforts (such as PV panel installations). There are

Portfolio Shifts in Emerging also several new uses in the pipeline with good potential. This latter grouping

Market ETFs explains why we initially expect industrial demand to initially grow faster than
global GDP, although the gap between the two could narrow, should thrifting
Bn, US$
and substitution eventually become more pronounced.
14

12 Jewelry demand could hold steady in the medium-term as structural change

10
in India and an improving global economy counter the modest price gains
expected. However, as the rally gathers force later on, demand is likely
8
to weaken notably, especially in India. Silverware is expected to behave
6 similarly but the later fall will be steeper due to greater exposure to the price-
sensitive Indian market. Photographic demand is forecast to continue its
4
slide although stability for consumer film should help slow future losses.
2

0 Retail investment is harder to call. On the one hand, we could see buying into
Jan-20 Jan-22 Jan-24 the later rally. On the other, we may see heavy profit taking, noting the stock
iShare MSCI China ETF of bars and coins built up in the last few years. That said, net demand should
iShare MSCI Emerging Market ex China ETF remain safely above the lows of the 2010’s as investors with a longer-term
horizon are mindful of prices being below all-time highs and as the structural
Source: Bloomberg
deficit (which we see continuing for several years yet) underpins confidence.

17
Chapter 3: Investment World Silver Survey 2024

Chapter 3
Investment
– The Fed’s aggressive monetary tightening Introduction
and a prolonged downturn in the Chinese Silver investment weakened across different market segments among both
property sector weighed on confidence institutional and retail investors in 2023. In the futures market, a lack of
in silver among institutional investors, investor conviction was highlighted by considerable fluctuations in managed
despite its sizable structural deficit. money positions, which at times moved into net short territory. Over-the
counter (OTC) buying was also notably weaker, compounded by a pick-up
– Retail sales of physical bars and coins in liquidations later in the year. ETP holdings recorded net outflows for the
also slipped, led by heavy losses in second year in a row, albeit at a lower pace. Lastly, silver bar and coin sales
Germany and India. experienced their first annual decline since 2018, slipping to a three-year low.

– With the Fed expected to stay on Institutional investors showed little interest in silver’s fundamentals (see
course for rate cuts later this year, silver Focus Box across). Instead, sentiment was dominated by macroeconomic
investment is forecast to recover. conditions. High US rates boosted the dollar and the opportunity cost of
holding non-yielding assets, hurting investor interest in silver, even though
rate cut expectations did at times help. Concerns about China’s economy and
their impact on base metals also weighed on silver investment.

As illustrated in the chart below, investors and Fed officials were at odds
over the path of US interest rates, leading to a wide, often volatile, gap
between official projections and market expectations. This at times created
extraordinary volatility in financial markets. Just as rate cut expectations
helped silver and gold’s appeal to investors in H1.23, the shift in the
consensus that interest rates would remain “higher for longer” had the
opposite effect over the summer, until the outbreak of the Israel-Hamas war.

Fed Rate expectations (for end-2023)

6.5

6.0

5.5

5.0

4.5

4.0

3.5
Jan-23 Apr-23 Jul-23 Oct-23
Fed Dot Plot - Range

Fed Dot Plot - Median Implied Rate basis Fed Fund Futures

Source: Bloomberg

18
 World Silver Survey 2024 Chapter 3: Investment

Given its industrial attributes, it was difficult for silver to escape from an
increasingly pessimistic view of China’s economy. Once the key GDP growth
driver, the real estate sector has been a major drag on the country’s economy
since 2021. With its heavy exposure to the housing market, base metals came
under sustained downward pressure in 2023, which spilled over into silver.

On top of a challenging macroeconomic backdrop, silver’s rangebound

behavior became a self-fulfilling prophecy with investors. It is worth
highlighting that silver tends to attract more speculative investors than gold,
thanks to its higher volatility. A narrowing price range encouraged range-
trading activity among such tactical players and limited commitment to long
positions. This was particularly noticeable in the latter part of the year when

Silver’s Only Limited Response to Record Deficits

One theme running through this World Silver Survey is the Finally, silver’s deficits seem well supplied by ample above-
underlying health of the global silver market, reflected in the ground bullion stocks, discussed in the focus box on page 26.
size of the physical deficit. Last year, this reached the second This is also evident by a sharp fall in 49s premiums in the US in
highest on record, eclipsed only by 2022. early 2024, compared to the previous two to three years. (We
should note though that they remain above long-term historical
Against this increasingly supportive backdrop, stronger levels.) Moreover, although London silver stocks reached a
price gains in the silver market might have been expected, reporting record low in February (mainly due a surge in Indian
especially with gold rising by 18% since the start of last year imports), the impact on forward rates has been limited.
to a series of all-time highs. The traditional view is that silver
will outperform gold in a bull market, but so far this has been
muted. By contrast, silver prices have met strong resistance
Silver’s Correlation with Gold & LME Index*
near $25 since 2023. The result has seen the gold:silver ratio on
occasion surpass 90, its highest level since late 2022. 1.0

0.8
Three factors contributing to this are worth highlighting. The
0.6
first is that gold has benefited from broad safe-haven buying
and reserve/portfolio diversification among central banks and 0.4
investors with a longer-term horizon. This is something that 0.2
silver has not enjoyed to anywhere near the same extent.
0.0

The second concerns the fall-out from China’s real estate crisis, -0.2

its impact on the local economy in the longer term and how -0.4
this has weighed on base metals’ demand outlook and prices. -0.6
Even though gold comfortably retains the highest correlation Jan-19 Jan-21 Jan-23
with silver, the latter’s link with industrial commodities is also Silver & Gold Silver & LME Index
noteworthy and has grown. From an average of 0.41 in 2021, the
60-day rolling correlation between silver and the LMEX Index *Rolling 60-day correlation coefficients between log-returns in the average
silver price and changes in the average gold price and the LME Index.
rose to 0.46 last year before edging higher to 0.50 in 2024. By
Observations within the yellow box are not statistically significant, at a 10%
way of comparison, the correlation with gold in 2023 averaged
significance level.
0.78, but this year has slipped to 0.75. Source: Metals Focus, Bloomberg

19
Chapter 3: Investment World Silver Survey 2024

S&P 500 and 10-Year US sharp gains in other assets (most notably US equities) dominated investors’
focus. Not only did fresh speculative buying ease but profit taking also picked
Treasury Yield
up, as investors exited silver long positions and rotated into risky assets with
Index % stronger expected price upside.
5,500 5.0
5,000 4.5
Retail sales of silver bars and coins also eased in 2023, although this should
4.0
4,500 be viewed in the context of their stunning growth over 2020-22. With physical
3.5
4,000 investment nearly doubling within three years to an all-time high in 2022,
3.0
3,500 2.5 growth had become difficult to sustain, and a decline was hardly surprising.
2.0 Unfavorable country-specific factors also came into play. For instance,
3,000
1.5 losses were particularly pronounced in Germany where investor interest in
2,500
1.0 silver collapsed following the VAT hike on some silver coins in January. As for
2,000 0.5 India, much of its weakness reflected record high local prices and weak rural
1,500 0.0 incomes. By contrast, the fall in the US was more modest, as silver benefited
Jan-17 Jan-19 Jan-21 Jan-23
from healthy safe-haven buying in response to the regional banking crisis.
S&P 500 (LHS)
10-Year US Treasury Yield (RHS)

Source: Bloomberg Outlook

Even though stubbornly high inflation and solid economic data have dashed
hopes of an early shift to monetary easing, investor interest in silver
improved in Q1.24, particularly from March onwards. In part, this reflected
optimism that the start of a rate cutting cycle is now in sight, a message
reaffirmed by the Fed after its March meeting. With fresh record high gold
prices, speculative inflows into silver picked up rapidly on expectations that
Annual Turnover on Major the white metal would play catch-up. A rebound in base metal prices also

Commodity Exchanges & LBMA1 provided an additional boost in sentiment towards silver.

Assuming inflation will continue easing, we expect the Fed will make three
Million ounces 2022 2023 Y/Y
25bps policy rate cuts this year, the first one likely to occur mid-year, and
SHFE2 91,037 115,394 27%
signal a generally dovish outlook for 2025. The subsequent fall in yields,
LBMA 91,815 97,332 6%
especially in real terms, should favor precious metal investment as we
CME 85,383 90,648 6%
progress into H2.24. Even with the recent retreat, a still high gold:silver ratio
MCX 4,347 4,899 13%
will also attract some investors who view silver as undervalued over the long-
CME Micro3 2,000 2,680 34%
term, perhaps also as its strong fundamentals gain attention. The extent of
SGE T+D2 5,872 2,429 -59%
its recovery, however, may be restrained by a weak Chinese property sector.

1. Turnover on all exchanges includes futures, spot or

deferred contracts where applicable; turnover on LBMA
Institutional Investor Activity
Similar to 2022, institutional investors were largely indifferent towards
includes spot, swaps and forwards.
2. The SHFE and SGE record each transaction twice, from silver over much of 2023. Although silver trading volumes on commodity
the point of view of the buyer and also the seller. However, to exchanges posted modest gains in 2023, this seems to have been led by a
compare these volumes with other exchanges, the reported
pick-up in short-term tactical trading. This is highlighted by wild fluctuations
figures have been halved (as shown above).
3. On the CME, 5,000oz for its standard futures contract & in investor positions in CME Group’s futures, which at times dipped into net
1,000oz for micro futures contract short territory. Fresh buying in the OTC market was also notably weaker, and
liquidations by high-net-worth investors and family offices also grew towards
Source: Bloomberg, Respective Exchanges
end-2023.

20
 World Silver Survey 2024 Chapter 3: Investment

Investor Positions on the CME* Commodity Exchanges

2023 saw silver trading increase on most major exchanges, albeit from a
Moz relatively low base. For all the exchanges listed overleaf, last year’s turnover
600 was still down by at least 30% on 2020 volumes. At the regional level, trading
in China and India reported significantly higher growth, reflecting the
400
outperformance of silver prices in local currencies relative to the dollar price.
200
Starting with the CME Group, turnover of its 5,000oz futures contract rose
0
by 6% y/y. However, this growth came from a low base in 2022, with the 2023
-200 total still the second lowest since 2017. This partial recovery was mostly led
by improving investor interest in gold (futures turnover for gold rose by 4% in
-400
2023) as silver is often viewed as a leveraged play on the yellow metal.
-600
Jan-17 Jan-19 Jan-21 Jan-23
However, gold saw investors stay net long (albeit with volatile changes in
Gross Long Gross Short positions) for most of the year, while silver investors were more active on the
Net Long/Short short side. In part this reflected the fact that safe-haven purchases tend to
center on gold. Moreover, China’s faltering growth and real estate problems
*Managed money positions; Source: CFTC also weighed on the outlook for industrial metals and, by extension, for
silver. Silver’s repeated failure to break out higher also encouraged some
investors to build sizable tactical shorts at times when industrial metals came
under pressure. Against this backdrop, managed money positions recorded
dramatic swings over the year, moving into negative territory at times,
something that has persisted in 2024-to-date.

In China, a 27% rise in aggregate volumes meant the Shanghai Future

Exchange’s silver futures remained the most traded silver contract globally
for the fourth year. Interest was lifted by healthy gains in local silver prices,
itself due to a weakening yuan against the dollar. Growing caution towards
SGE & SHFE Silver: base metal prices and the slump in local equity markets also encouraged
Monthly Turnover investors to rotate into silver (and gold). By contrast, T+D contract turnover
Bn oz Bn oz on the Shanghai Gold Exchange more than halved to a 13-year low, as a
12.5 40
result of tightening trading rules on retail investor activity that started in late
2020. On the Multi Commodity Exchange of India, futures turnover rose by
10.0
30 13% and options trading jumped by more than five-fold. Investor interest was
boosted by the rally in the local silver price to record highs last year.
7.5
20
Over-the-Counter Market (OTC)
5.0
LBMA trading volumes, a proxy for OTC activity, edged up slightly in 2023.
10 These gains were led by higher activity over February-July when the lifting of
2.5
lockdown restrictions in China raised investor sentiment towards industrial
commodities. The US regional banking crisis and its potential implications for
0.0 0
the Fed’s rate decisions also generated fresh interest in precious metals.
2014 2017 2020 2023
SGE T+D, LHS SHFE, RHS
Investor interest then waned over the rest of the year, with LBMA monthly
turnover falling to a three-year low in December. As discussed earlier, a
Source: Shanghai Gold Exchange, Shanghai Futures
hawkish Fed and growing pessimism on China curtailed silver’s investment
Exchange

21
Chapter 3: Investment World Silver Survey 2024

Silver ETP Holdings appeal. Investor interest was also undermined by silver’s rangebound prices.
Anecdotal evidence suggest that some high-net-worth investors, mostly in
Moz
North America, decided to take profits in silver and rotate into riskier assets
1,400
(such as US equities) that posted sharper gains. Such a lack of investor
1,200 conviction continued in early 2024 before sentiment started to improve in
March, in response to an upside breakout in both gold and copper prices.
1,000

800

600 Exchange-Traded Products (ETPs)

Silver ETPs witnessed annual outflows for the second year in a row in 2023.
400
Combined holdings fell by 4% or 42Moz (1,310t) over the year to 964Moz
200 (29,980t) by end-2023, down by 20% from their 2021 all-time high and taking
holdings to their lowest level since July 2020.
0
Jan-15 Jan-18 Jan-21 Jan-24
During H1.23, global holdings actually remained broadly steady at just above
iShares* Sprott** WisdomTree
1,000Moz (31,000t), as growing expectations of faster rate cuts and the US
ZKB Others
regional banking crisis underpinned silver’s investment appeal. The bulk of
*iShares Silver Trust; **Combined holdings of the Sprott outflows occurred in H2.23, with these starting to pick up from July onwards.
Gold & Silver and Sprott Silver In part, this was led by a shift in investor rate expectations concerning the
Source: Bloomberg, Respective Issuers
Fed’s guidance and increasing pessimism towards China’s economy. Investor
fatigue about silver prices also grew, in the wake of its struggle to break
out higher during 2022-23. All these factors encouraged some investors
to liquidate their ETP holdings and switch in favor of risky assets that had
showed more pronounced gains during 2023.

ETP holdings continued to drift lower in early 2024, falling by another

2% through to mid-March. Since then, these outflows have been entirely
reversed, as UK-listed funds witnessed significant inflows which is likely to
have been driven by institutional investors. This recovery is expected to
continue for the rest of 2024, as the start of the rate cutting cycle generates
more interest in silver.

Physical Investment Forecast Physical Investment

After hitting an all-time high in 2022, physical investment fell by 28% y/y
in 2023 to a three-year low. Most key markets recorded weaker volumes
Million ounces 2023 2024F Y/Y
last year. Losses were particularly acute in Germany where sales collapsed
Bars 116.2 100.8 -13%
following the VAT change at the start of 2023. India and Australia also
Coins 126.9 111.2 -12%
recorded heavy losses of over 30%. The drop in the US was far more
Global Total 243.1 212.0 -13%
restrained at 13%, and absolute volumes remained historically high.
Source: Metals Focus
In Europe, physical investment fell by 59% in 2023 to its lowest level since the
2008 financial crisis. Germany, with a share of over 70% in the region, posted
a 73% drop and accounted for the bulk of losses. Excluding this country,
the decrease in Europe came in at a far smaller 16%. Looking at Germany in
detail, a VAT hike to some silver products was undoubtedly the trigger. Over

22
 World Silver Survey 2024 Chapter 3: Investment

German and Other European 2014-22, non-EU silver coins were subject to 7% VAT on the full value of the
coin plus a 19% VAT on dealers’ margins. Other silver bullion products, by
Physical Investment
contrast, were subject to 19% VAT on the full product value. This favorable
Moz tax treatment was abruptly removed by the government from the start of
60 2023. Coin sales effectively collapsed following the change, and feedback
from key market participants suggest that more time is still needed for the
50 public to accept the new fiscal regime.

40
Other factors also undermined investor interest. In the wake of the

30 Eurozone’s fastest interest rate hiking cycle in history, the growing appeal
of traditional savings products diverted retail investors from physical silver
20 (and gold). The ongoing cost of living crisis also encouraged retail investors
to hold more cash and to become cautious about making new investments.
10 Lastly, easing demand for safe haven products and a lack of clear direction
in silver prices did not help. Physical investment has remained subdued
0
2014 2016 2018 2020 2022
2024-to-date, as many of these headwinds have remained in place. Once the
ECB starts to cut interest rates, this may help generate some fresh interest,
Germany Other Europe
with full-year sales expected to recover by a modest 7%.

Source: Metals Focus

Taken at face value, the 13% drop last year for US physical investment
contrasts sharply with the collapse in Germany. The headline total for the US,
of 118.1Moz (3,673t), was still exceptionally high, realizing the fifth highest
total on record. As such, despite seeing a year-on-year fall, the US still
offered a crucial outlet for some mints and refiners looking for a home for
their investment products that normally would have been bought in Germany.
That said, the relatively upbeat total for the US hides a mixed intra-year
performance. Late 2022 had already seen the market starting to soften,
albeit modestly and that weaker tone continued into early 2023. Although this
US Physical Investment was masked by healthy sales of newly dated coins, it still helped drive a 10%
y/y rise in Q1 sales (source: Metals Focus’ Bullion Coin Survey).
Moz
90 However, the market burst into life in March, with the collapse first of Silicon
80 Valley Bank and then Signature Bank, the former representing the largest
70 US banking failure since 2008/09. For some dealers, that led to record sales
with echoes of 2020-22, and so also marked the return of massively high
60
premiums. The surge in activity lasted through until mid-May. From this
50
point on, the market started to soften, but it was only in November, as prices
40
jumped, that a sharper downturn emerged. This carried over into early 2024,
30 resulting in higher dealer stock levels, which was compounded by the release
20 of newly dated bullion coins. The combination of elevated dealer inventories
10 and weaker demand also hit those delivering 100oz, 1oz rounds and other bar

0 products into the US, generating sizable double-digit year-on-year losses.

2014 2016 2018 2020 2022

Bars Coins Australian silver bar and coin demand fell by 38% in 2023 to 12.2Moz
(380t). The year started on a positive note, but gross sales declined and

Source: Metals Focus

dealers’ buy-backs increased as the year progressed. In part, this was due to

23
Chapter 3: Investment World Silver Survey 2024

Indian Physical Investment investors’ disappointment in silver’s price performance. A strong Australian
real estate market was another headwind for precious metals investment
in general. Moreover, the cost of living crisis, caused by inflation and rising
Moz Rupees/kg (000's)
mortgage payments, due to higher interest rates, limited disposable incomes
120 70
to invest in silver and fueled some distress selling. Finally, market saturation,
100 following two exceptionally strong years, did not help. Demand is likely to fall
60
further in 2024, judging by the very quiet first few months of the year.
80
50
Indian physical investment fell by a sharp 38% to 49.3Moz (1,534t) in 2023.
60
While the fall appears notable, part of it reflects the high base in 2022 when
40
40 bar and coin demand surged by 188% to 79.4Moz (2,470t), the highest since
2015. Notwithstanding this and pandemic-driven swings since 2020, silver
30
20
investment was still weak (-13%) compared to pre-pandemic levels in 2019.

0 20
2014 2016 2018 2020 2022 Turning to last year’s drivers, demand was undermined by high local silver
prices. While international prices fell 1% intra-year, rupee depreciation saw
Coins
Bars domestic prices rise by 7%. Indian silver demand has always been price
Silver Rupee Price sensitive and therefore the price achieving new highs last year and holding at
higher levels (above Rs 70,000/kg) for several months encouraged investors
Source: Metals Focus, Bloomberg
to take profits while fresh investors had little opportunity for bargain hunting
except for during September and October when the price corrected.
Moreover, arbitrage opportunities (where investors buy physical and sell on
exchange to earn a yield) were absent for much of 2023. This hit demand from
high-net-worth individuals who tend to dominate this trade.

That aside, physical investment has also faced rising competition from ETPs,
which have grown in popularity. By end-February 2024, their holdings had
doubled y/y, surpassing 16Moz (500t). High prices also impacted gifting
demand, which in turn affected silver coin purchases. A large share of that is
driven by gifting during occasions such as weddings and the birth of a child.

Physical Investment
Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y
United States 111.9 124.8 101.1 55.7 47.4 48.2 94.3 138.2 135.6 118.1 -13%
India 100.8 110.4 36.5 40.5 54.0 56.5 8.7 27.6 79.4 49.3 -38%
Germany 20.4 23.6 26.1 24.4 27.6 37.8 46.5 50.3 48.9 13.2 -73%
Australia 4.3 4.3 5.1 3.3 3.6 3.5 11.4 16.0 19.6 12.2 -38%
Canada 7.4 7.6 7.2 4.7 4.6 5.0 7.5 10.6 12.0 7.9 -35%
China 14.8 13.9 13.8 9.4 9.0 7.9 8.7 7.8 7.4 7.8 7%
Other Europe 8.4 7.8 12.8 10.6 12.9 13.4 12.5 15.1 16.4 13.8 -16%
Other East Asia 8.5 7.8 8.4 6.6 6.9 13.2 13.2 12.6 11.4 9.5 -17%
Others 6.4 9.0 1.9 0.5 -0.1 1.8 5.5 6.3 6.4 11.4 78%
Global Total 283.0 309.3 212.9 155.8 165.9 187.4 208.1 284.3 337.1 243.1 -28%

Source: Metals Focus

24
 World Silver Survey 2024 Chapter 3: Investment

Indexed Silver Prices Investment in India is also influenced by the jewelry and silverware market.
Typically, individuals involved in these segments are also big investors, often
Index, Jan-20=100 buying silver during low-price periods to be fabricated later. With the price
165 rise leading to a slowdown in consumer demand, buying from these investors
155 also fell, with many using the high price as an opportunity to divest silver.
145
135 After the drop in demand in 2023, we believe this year’s Indian investment
125 could see a strong increase as the price has held above Rs.70,000/kg which
115 in turn has led to price expectations turning more positive. That said, Indian
105 investors have bought upwards of 563Moz (17,500t) of bars and coins in the
95
last ten years and there remains a risk of large-scale liquidations if prices
85
surge in a short period and reach levels close to Rs.100,000/kg.
75
Jan-20 Jan-22 Jan-24
XAG/CNY XAG/INR Physical investment in China rebounded by 7% to 7.8Moz (244t), driven by
XAG/USD modest gains in both bar and coin markets. Due to silver’s VAT treatment
(13% is levied on the total value of silver products, whereas gold and platinum
are exempt), these silver markets are dominated by gifting and collector
Source: Metals Focus, Bloomberg
demand. The recovery last year was mainly due to a relatively low base in
2022 when COVID measures severely affected business activity.

It is worth remembering that silver physical investment recorded a dramatic

slump in 2017 (falling by 32% to 9.4Moz or 292t) as investor confidence
in silver was impaired and the market seemed saturated following sizable
purchases over the previous years. Physical investment last year was 16%
lower than in 2017, reflecting the pressure from the economic slowdown and
weaker consumer sentiment on the country’s gifting and collector market.
In 2024, we expect physical silver investment to increase by a modest 4%
to 8.1Moz (253t), driven by support from market promotions, online sales
channels and attractive themes covered by commemorative coins.

Coins & Medals Fabrication

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

United States 46.4 49.1 39.4 19.3 17.1 20.5 32.7 32.2 21.1 29.1 38%
Canada 30.8 35.4 33.6 18.9 18.4 23.0 28.8 36.4 35.8 23.4 -35%
Australia 8.5 12.7 13.2 10.7 10.4 12.7 17.3 20.0 24.1 15.4 -36%
UK 2.2 3.5 3.5 3.1 3.5 3.2 9.7 15.7 19.9 14.7 -26%
India 5.7 7.2 7.1 8.3 10.5 11.3 5.2 6.7 16.9 11.8 -30%
Austria 4.6 7.3 3.4 2.1 2.1 2.9 7.2 12.3 12.2 10.0 -18%
China 13.7 13.7 12.9 8.6 8.6 7.3 8.1 7.3 7.1 7.4 5%
South Africa 0.0 0.6 0.0 1.2 3.7 3.6 7.9 10.3 7.7 3.4 -56%
Germany 1.3 1.9 4.3 4.0 4.0 3.9 3.9 3.9 3.9 2.9 -25%
Others 7.3 7.8 6.9 6.7 6.9 7.9 7.6 8.7 9.4 8.8 -6%
Global Total 120.6 139.2 124.3 82.8 85.4 96.2 128.3 153.5 158.1 126.9 -20%

Source: Metals Focus

25
Chapter 3: Investment World Silver Survey 2024

Above-Ground Silver Stocks

Global silver supplies once again fell short of demand last year.
While the market deficit fell by 30% to 184.3Moz (5,732t), it was Identifiable Silver Bullion Inventories*
still one of the largest on record and amounted to a sizable 15%
of global demand. Over the past three years of deficits, above- Million ounces 2021 2022 2023 Y/Y

ground silver bullion inventories have declined by a cumulative London vaults 1,161.5 840.9 856.2 2%
543.1Moz (16,892t), equivalent to nearly two-thirds of average CME 355.7 299.0 277.9 -7%
annual silver mine production in recent years. SGE 73.9 69.0 46.5 -33%
SHFE 75.9 69.2 38.2 -45%
Last year’s deficit was very much reflected in reported silver Other 2.7 7.4 4.1 -44%
inventory trends. Over the course of the year, stocks held in Total 1,666.9 1,285.5 1,229.9 -5%
London vaults, as well as the various commodity exchange
*Year-end; Source: Metals Focus, LBMA, CME, SGE, SHFE, MCX & OSE.
depositories that we track, fell by 62.6Moz (1,947t) to end the
year at 1,229.9Moz (38,036t). This implies there were draw- dynamics. Outside China, CME stocks were down by 21.1Moz
downs of 121.7Moz (3,785t) from other, unreported silver (657t) last year, while inventories held in London vaults were in
inventories. fact up slightly.

Much of the drop in reported stocks took place in China. There is no doubt that we are in a period of structural deficits
Combined stocks held in Shanghai Gold Exchange (SGE) and for silver. For now, there remains enough silver inventories to
Shanghai Futures Exchange (SHFE) vaults fell by 39% y/y, or fill these gaps. Reported stocks of the metal, namely those in
53.5Moz (1,664t), to a six-year low of 84.7Moz (2,634t) by the end London vaults as well as exchange-registered depositories,
of 2023. Chinese exchange stocks have fallen further this year- amounted to 1.2 billion ounces (around 38,000t) at end-2023
to-date. China has historically been a surplus silver market, due and we understand there remain bullion inventories held
to the sizable production of silver from imported base metals elsewhere. Stockpiles are finite, however, and eventually this
concentrates. However, the breakneck rise in local industrial draw-down will create tight physical market conditions and
demand is changing the local supply/demand and inventory ultimately fuel price rallies.

UK Silver Bullion Trade Balance London & Exchange* Vault Inventories

Moz Moz
300 1,800

250
1,600
200
1,400
150
Net Exports 1,200
100

50
1,000
0
800
-50

-100 Net Imports 600

Jan-20 Jan-22 Jan-24
-150
2014 2016 2018 2020 2022 London Exchanges
*London stocks include silver stored at LBMA-member custodian vaults;
Exchanges stocks include silver stored at the CME Group, the SHFE, the
SGE, the Tocom/OSE and MCX
Source: S&P Global Source: Metals Focus, LBMA, Respective Exchanges

26
 World Silver Survey 2024 Chapter 4: Mine Supply

Chapter 4
Mine Supply
– Global mined silver supply fell by 1% y/y to Mine Production
830.5Moz (25,830t) in 2023, largely due to In 2023, global mined silver production fell by 1% y/y, to 830.5Moz (25,830t),
the temporary suspension of Peñasquito. 11.6Moz (362t) lower than our forecast in last year’s World Silver Survey,
Weaker output in Mexico owing to the temporary suspension of Newmont’s
– Primary silver miners’ all-in sustaining Peñasquito in Q2 and Q3.23 following union strike action and the processing
costs increased by 25% y/y as key input of lower grade ore at some mines in Argentina were key drivers of this fall.
costs rose and fewer silver ounces were
produced. Production from primary silver mines fell marginally in 2023, down 0.6% y/y.
In contrast, silver by-product output from lead-zinc operations rose by 1% y/y
– Mined production is expected to fall to despite the suspension of some mines in response to low base metal prices.
823.5Moz (25,613t) in 2024 as Peruvian Silver derived from copper operations also increased, up 3.9% y/y driven by
output is forecast to drop. productivity gains and the ramp up of new operations. Output from primary
gold mines dropped by 12.2% y/y, influenced by the loss of production at
Peñasquito. On a country level, lower production from Mexico (-10.9Moz,
340t), Argentina (-4.9Moz, 152t), Australia (-3.1Moz, 95t) and China (-2.5Moz,
78t) was partially offset by higher production in Bolivia (-3.8Moz, 119t) and
Chile (+10.1Moz, 314t).

This year, we anticipate mined silver supply will fall further, to 823.5Moz
(25,613t) influenced by a fall in Peruvian output following the temporary
closure of some mines. Mexico’s production will likely recover and output
from the US will rise as Coeur Mining’s Rochester expansion continues to
ramp up and Hecla’s Lucky Friday returns to full production.

Major Changes to Global Mine Production, 2023 versus 2022

Year-on-year
change, Moz
-10.0 -7.5 -5.0 -2.5 -0.5 +0.5 +2.5 +5.0 +7.5 +10.0

Source: Metals Focus

27
Chapter 4: Mine Supply World Silver Survey 2024

Top 20 Producing Countries North America

Silver output from North American mines fell by 5.3% y/y to 241.4Moz
(7,508t). All countries in the region recorded lower output; Mexico (-10.9Moz,
Million ounces 2022 2023 Y/Y
340t), Canada (-1.5Moz, 48t) and the US (-1.2Moz, 36t).
Mexico 213.2 202.2 -5%
China 111.8 109.3 -2%
Mexico’s silver production fell by 5.1% y/y to 202.2Moz (6,290t). Primary
Peru 107.0 107.1 0%
gold operations produced less silver during the year, offsetting the 2.1% y/y
Chile 41.9 52.0 24% rise in primary silver mine output. Newmont’s Peñasquito (-12.0Moz, 373t)
Bolivia 38.8 42.6 10% was suspended from June 7th to October 13th due to union strike action.
Poland 42.4 42.5 0% Production growth from other primary silver mines mitigated the impact of
Russia 41.1 39.8 -3% this suspension, most notably from newer operations, particularly Fresnillo
Australia 37.5 34.4 -8% and MAG Silver’s Juanicipio (+7.6Moz, 235t) and SilverCrest Metals’ Las
Chispas (+6.2Moz, 192t).
United States 33.2 32.0 -3%
Argentina 30.8 26.0 -16%
In the US, silver production dropped by 3.5% y/y to 32.0Moz (996t) following
India 22.3 23.8 6%
lower output from primary silver mines. Increases in silver production
Kazakhstan 15.4 16.6 8%
from primary silver operations, such as Americas Gold and Silver’s Galena
Sweden 14.6 12.6 -14% (+0.4Moz, 14t) and Coeur’s Rochester (+0.3Moz, 10t), were offset by the lower
Indonesia 10.3 10.3 -1% production at Hecla’s Lucky Friday (-1.3Moz, 41t) as a result of the fall-of-
Morocco 8.7 8.8 1% ground and fire incident that occurred on August 21st; operations at the mine
Uzbekistan 7.0 7.7 9% resumed on January 9th this year.
Canada 8.7 7.1 -18%
Papua New Guinea 3.0 4.3 42% Canadian silver output fell for the fourth consecutive year, by 17.8% y/y to

Spain 3.5 3.7 6%

7.1Moz (221t). This was the result of fewer silver ounces produced as a by-

Brazil 2.4 3.3 36%

product of base metal mines. Trevali’s Caribou zinc mine (-0.6Moz, 19t) was
placed on care and maintenance after the company decided to indefinitely
Others 42.9 44.4 3%
suspend operations due to financial and operational challenges. In contrast,
Total 836.7 830.5 -1%
silver output from silver and gold operations increased due to the production
Source: Metals Focus
ramp-up at Hecla’s Keno Hill (+0.8Moz, 26t) and higher feed grades at
Hudbay’s Snow Lake (+0.3Moz, 9t).

Silver Mine Production by Source Metal in 2023

Primary
Other (0.5%)
Million ounces Lead/Zinc Silver Copper Gold Other
North America 38.9 147.0 12.4 42.8 0.3
Central & South America 73.6 41.4 85.8 39.7 0.0 Gold (13.7%)

Europe 12.4 1.5 51.1 1.7 0.0 Lead/Zinc

Africa 3.4 6.8 4.7 3.1 0.0 (30.8%)

CIS 11.2 16.5 28.1 11.2 2.4 Copper (26.7%)

Asia 102.2 7.6 35.0 9.1 1.5

Oceania 14.1 14.4 4.3 6.1 0.0 Primary Silver
(28.3%)
Total 255.8 235.2 221.4 113.8 4.2

Source: Metals Focus

28
 World Silver Survey 2024 Chapter 4: Mine Supply

Top 20 Producing Companies Central & South America

In Central and South America, silver mine supply increased by 4.2% y/y to
Million ounces 2022 2023 Y/Y
240.6 Moz (7,483t). This was largely due to higher output in Chile (+10.1Moz,
Fresnillo1 51.1 53.5 5%
314t) and Bolivia (+3.8Moz, 119t), which more than offset a slight decline in
KGHM Polska Miedź 2 42.7 45.9 8%
Argentina (-4.9Moz, 152t). Total, combined production throughout the region
Hindustan Zinc Ltd. 3,4,5 22.3 23.8 6%
was at its highest since 2020.
Pan American Silver 18.5 20.4 11%
Glencore 23.8 20.0 -16% In Chile, Kinross Gold’s La Coipa mine has continued to ramp-up its
CODELCO 8
20.9 19.2 -8% production after achieving first gold pour in Q1.22. The mine accounts for
Industrias Peñoles 6 15.9 18.9 19% a significant portion (+3.1Moz, 97t) of the country’s additional output. Pan
Southern Copper 18.6 18.4 -1% American Silver’s El Peñón mine, which was acquired from Yamana Gold in
Newmont 29.7 18.0 -39% Q1.23 and has been in operation since 1999, achieved higher production

Polymetal Intl. 21.0 17.7 -16% (+1.0Moz, 32t), further contributing to Chile’s increased output. Production at
Lundin Mining’s Candelaria operation rose (+0.4Moz, 13t), largely on account
Volcan Cia Minera 14.3 15.2 6%
of higher silver grades being mined, with mill throughput remaining steady.
Hecla Mining 14.2 14.3 1%
The ongoing debottlenecking of the ball mill at Anglo American’s Collahuasi
South327 12.3 13.0 6%
mine continued to benefit output (+0.4Moz, 13t), with further production
BHP7 11.7 11.8 1% increases anticipated in 2024.
Boliden7 12.1 10.4 -15%
Nexa Resources 10.0 10.3 3% Bolivian silver production climbed (+3.8Moz, 119t) to the highest level since
Coeur Mining 9.8 10.3 4% 2017, largely because of more ounces being produced from lead and zinc
First Majestic Silver 10.5 10.3 -3% operations. Pan American Silver’s San Vincente operation produced more
SSR Mining 8.4 9.7 15% silver y/y (+0.5Moz, 15t) reflecting enhancements to mine dilution controls
Hochschild Mining 11.0 9.5 -14% and improved infrastructure on site.

NB: 1 - Excludes Silverstream contract, 2 - Payable

production, 3 - KGHM Group figures including Polish and In Argentina, output fell as some mines processed lower grade ore. In
international operations, 4 - Hindustan Zinc is a Vedanta addition, Pan American Silver’s Manantial Espejo mine (-3.3Moz, 102t) was
Group company, 5 - Production from integrated operations put into care and maintenance in Q4.22, as ore reserves and stockpiles had
only, 6 - Refined Silver, 7 - Excludes 100% Fresnillo,
been depleted. There was residual production in 2023.
8 - Estimate
Source: Company Reports, Metals Focus

Asia
Silver output from Asia declined by 2% y/y to 155.4Moz (4,834t) in 2023,

Mine Production Forecast as gains from India were offset by losses from China and Turkey. Indian
production increased 6% y/y due to higher ore production and improved
by Region
grades from Hindustan Zinc. However, the growth momentum from Indonesia,
Million ounces 2023 2024F Y/Y
which had been a key driver in the region, tapered off in 2023, as the ramp-up
N America 241.4 251.0 4%
of underground mining at Grasberg was largely completed.
C&S America 240.6 218.9 -9%
Asia 155.4 152.9 -2%
China, the region’s dominant producer, experienced a 2% drop in silver
CIS 69.5 71.7 3%
production, falling to a decade-low of 109.3Moz (3,399t). This was primarily
Europe 66.7 65.4 -2%
due to lower by-product output from copper mining. Two major mines, Jiama
Oceania 38.8 39.8 2% and Julong, faced temporary closures. Jiama, which produced 3.2Moz (99t)
Africa 18.1 23.7 31% in 2022, suspended operations following a tailings facility overflow in March.
Global Total 830.5 823.5 -1% Additionally, production at Julong was impacted by a temporary suspension

Source: Metals Focus due to a safety incident in May.

29
Chapter 4: Mine Supply World Silver Survey 2024

Mine Production
Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

North America
Mexico 185.4 192.1 174.3 187.0 194.5 187.8 180.2 196.0 213.2 202.2 -5%
United States 37.9 35.0 37.0 33.2 29.8 31.4 31.7 32.5 33.2 32.0 -3%
Canada 15.2 11.9 11.6 12.7 11.8 13.5 9.4 9.1 8.7 7.1 -18%
Sub-total 238.5 239.0 222.8 232.8 236.1 232.6 221.3 237.7 255.0 241.4 -5%

Central & South America

Peru 126.0 135.6 152.3 155.0 146.5 135.1 101.6 115.5 107.0 107.1 0%
Chile 50.2 48.1 46.6 40.4 40.0 38.2 47.4 41.2 41.9 52.0 24%
Bolivia 43.1 42.0 43.5 38.5 38.3 37.1 29.9 41.5 38.8 42.6 10%
Argentina 29.6 36.4 31.9 29.2 30.9 32.9 24.0 27.9 30.8 26.0 -16%
Brazil 1.1 1.6 2.5 2.8 2.3 2.2 2.2 2.3 2.4 3.3 36%
Panama 0.0 - - - - 0.9 1.6 2.5 2.8 2.7 -3%
Dominican Republic 4.4 3.1 3.9 4.9 5.1 4.5 4.1 3.4 2.9 2.4 -16%
Guatemala 27.6 27.7 27.0 10.8 - - - - - - na
Others 3.4 2.6 2.0 2.0 2.5 3.0 3.0 4.2 4.3 4.5 5%
Sub-total 285.3 297.1 309.8 283.5 265.5 253.9 213.9 238.6 231.0 240.6 4%

Europe
Poland 38.4 39.2 40.9 41.7 40.9 40.4 39.4 42.0 42.4 42.5 0%
Sweden 12.7 15.8 16.4 15.5 15.0 14.4 13.4 13.9 14.6 12.6 -14%
Spain 1.1 1.4 1.5 1.9 2.4 2.7 3.4 3.9 3.5 3.7 6%
Portugal 1.5 1.5 1.4 1.3 2.9 3.1 3.1 3.1 2.5 3.2 26%
Finland 0.1 0.1 0.1 0.1 0.1 1.1 1.6 1.5 1.5 1.5 -0.3%
Others 2.5 2.4 2.3 2.4 2.0 2.7 3.1 2.7 2.3 3.2 37%
Sub-total 56.4 60.3 62.6 62.9 63.3 64.3 64.0 67.2 66.9 66.7 -0.3%

Africa
Morocco 7.8 9.0 10.0 10.3 7.8 9.1 8.0 8.0 8.7 8.8 1%
Botswana 0.8 0.1 0.1 0.0 0.0 0.0 0.0 0.6 1.7 2.4 42%
Eritrea 1.7 3.2 3.2 2.5 1.7 1.6 2.3 2.4 1.8 2.1 19%
South Africa 1.8 1.9 1.9 2.2 1.6 2.0 1.3 1.3 1.7 1.9 13%
Others 3.3 3.5 2.2 2.4 2.4 2.5 2.5 2.6 2.8 2.9 4%
Sub-total 15.4 17.7 17.5 17.4 13.6 15.2 14.1 14.9 16.6 18.1 9%

Commonwealth of Independent States

Russia 46.1 51.1 46.6 42.0 43.1 44.7 42.1 39.0 41.1 39.8 -3%
Kazakhstan 18.1 16.1 17.4 18.9 19.8 17.0 17.4 15.0 15.4 16.6 8%
Uzbekistan 5.9 5.9 5.9 5.9 5.9 6.1 6.3 6.8 7.0 7.7 9%
Armenia 2.4 2.5 2.4 2.6 2.0 2.4 2.6 2.5 2.5 2.3 -9%
Tajikistan 1.0 1.1 1.3 1.5 1.5 1.4 1.5 1.5 1.5 1.2 -19%
Others 0.2 0.3 0.6 0.5 0.6 0.6 0.6 0.6 0.6 2.0 201%
Sub-total 73.6 77.0 74.3 71.5 72.9 72.3 70.5 65.5 68.2 69.5 2%

30
 World Silver Survey 2024 Chapter 4: Mine Supply

Mine Production

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Asia
China 119.0 119.1 121.3 116.4 110.6 111.5 109.5 112.9 111.8 109.3 -2%
India 8.4 12.0 14.0 16.9 21.2 20.4 21.6 22.2 22.3 23.8 6%
Indonesia 7.0 9.9 10.8 10.0 10.3 7.6 9.1 10.2 10.3 10.3 -1%
Turkey 6.4 6.6 6.7 4.9 4.7 3.2 4.0 5.5 4.7 2.9 -38%
Iran 2.3 2.2 2.5 2.5 2.5 2.6 2.7 2.7 2.8 2.8 3%
Mongolia 1.7 2.0 2.2 1.8 1.7 1.6 1.7 1.8 1.6 1.9 13%
Philippines 0.7 1.0 1.1 1.0 1.0 1.0 0.8 1.0 1.8 1.6 -13%
Laos 1.3 1.7 1.6 1.4 1.2 1.1 0.9 1.0 0.8 0.7 -18%
Myanmar 0.3 0.3 0.3 0.4 0.7 0.8 0.8 0.6 0.5 0.5 2%
Others 2.5 2.2 3.1 1.7 1.7 1.6 1.7 1.7 1.7 1.7 0.3%
Sub-total 149.6 156.8 163.7 157.0 155.6 151.3 152.7 159.4 158.4 155.4 -2%

Oceania
Australia 59.4 46.0 45.6 36.0 40.3 42.6 43.0 42.8 37.5 34.4 -8%
Papua New Guinea 3.1 2.3 3.2 2.1 3.0 4.7 3.8 2.9 3.0 4.3 42%
Others 0.6 0.6 0.4 0.4 0.3 0.1 0.1 0.1 0.1 0.1 -22%
Sub-total 63.1 48.9 49.2 38.6 43.6 47.4 46.9 45.8 40.7 38.8 -4%

Global Total 882.0 896.8 899.8 863.6 850.6 837.2 783.4 829.0 836.7 830.5 -1%

Source: Metals Focus

Other Regions
Global Mine Production Silver production in Oceania continued to decline, falling by 4.5% y/y to
Moz 38.8Moz (1,208t) in 2023. Output in Australia dropped by 8.1% y/y to 34.4Moz
900 (1,071t) as operations, such as Aeris Mining’s Jaguar and Aurelia Metals’ Hera,
800 were placed into care and maintenance. This was partly offset by far higher
700 output in Papua New Guinea, up 42.2% y/y to 4.3Moz (134t), as Harmony’s
600 Hidden Valley processed increased volumes of high-grade ore in-line with the
500 improved reliability of the overland conveyor belt.
400
300 In the CIS, silver output rose by 1.8% y/y to 69.5Moz (2,161t) as Kazakhstan’s
200 production experienced steady growth. Kazzinc produced higher silver
100 concentrates as Zhairem’s ramp-up outweighed the delayed processing at
0 Glencore’s smelter facility. African silver output increased by 8.9% y/y to
2014 2016 2018 2020 2022 18.1Moz (562t), as MMG’s Khoemacau in Botswana successfully ramped-
N America C&S America Asia up to full production. In contrast, European silver produced fell marginally
CIS Europe Oceania to 66.7Moz (2,074t) despite higher output in Portugal and steady-state
Africa production in Poland. Reduced output in Sweden was due to both lower ore

Source: Metals Focus milled and grade at Lundin’s Zinkgruvan.

31
Chapter 4: Mine Supply World Silver Survey 2024

Global By-Product Production By-Product Analysis

A total of 71.7% of annual silver mine supply was produced as a by-product
Mt Moz
in 2023. While the share of silver produced from gold mines declined y/y,
25 120
from 15.5% to 13.7%, the contribution from copper and lead/zinc operations
20 115 rose, from 25.5% to 26.7% and from 30.3% to 30.8% respectively. The
share of production from primary silver mines was unchanged year-on-year,
15 110
accounting for 28.3% of mine output in 2023.

10 105
Lead/zinc operations remained the largest source of silver mine supply in
5 100 2023, producing 255.8Moz (7,957t). Overall, gains in Bolivia (3.3Moz, 103t),
Peru (2.6Moz, 81t) and India (1.4Moz, 44t) exceeded falls in production in
0 95
Copper Zinc Lead Gold* Australia (-2.2 Moz, 69t), Sweden (-1.9Moz, 60t) and Canada (-1.4Moz, 45t).
While global output of lead/zinc metal production fell, the silver supplied
2014 2015 2016 2017 2018
from these base metal operations rose by 1.0% y/y. Australia experienced
2019 2020 2021 2022 2023
the largest fall in zinc output (-141kt, -11%) as a number of mines suspended
operations due to low zinc prices, including Aurora Metals’ Mungana, King Vol
mines and Aeris Resources’ Jaguar mine. Ireland saw the largest percentage
*Gold in Moz, RHS
decline (-50kt, -48%) of any producing country, as Boliden’s Tara mine went
Source: ICSG, ILZSG, Metals Focus
into temporary care and maintenance.

Silver production from copper assets totaled 221.4Moz (6,885t) in 2023,

accounting for 26.7% of total silver supply. Globally, copper output rose 0.5%
y/y, while silver produced from copper mines grew 3.9%. Peruvian copper
output rose (310kt, 12.7%) as Anglo American’s Quellaveco has now fully
ramped up production. Copper production in the Democratic Republic of
Congo increased y/y (133kt, 4.9%), mostly due to Ivanhoe Mines’ Kamoa-
Kakula operation making further productivity gains.

Gold mines accounted for 113.8Moz (3,540t), or 13.7%, of global silver

Mine Production by Source Metal production, down from 15.5% in 2022, while worldwide gold production itself
Moz % increased by a slight 0.3% y/y. Russian gold production grew 2% y/y, largely
900 34 on account of Polyus’ Olimpiada operation extracting higher grade material
800 which boosted the company’s gold production by 0.23Moz (7t). Silver
700 32 production as a by-product from gold mining increased by 6.5% y/y in Russia.
600
500
30 Silver produced as a by-product is forecast to see its share drop to 71.3% of
400
300 the global total in 2024, to 586.9Moz (18,254t). The share of silver produced
200 28 from primary gold assets is expected to increase to 15.5%. Production at
100 Kinross’ La Coipa mine in Chile continues to ramp up and Gold Fields’ Salares
0 26
Norte is expected to start producing in Q2.24 following delays. Production
2014 2016 2018 2020 2022
from copper and lead/zinc mines is expected to decline by 3.9% and 5.3%
Lead/Zinc Primary Silver
Copper Gold y/y respectively. First Quantum’s Cobre Panama has been put into care
Other Primary Silver % and maintenance following the Supreme Court’s ruling that the concession
contract was unconstitutional. Silver production is also expected to be lower
at Buenaventura’s El Brocal due to the temporary suspension of the Tajo
Source: Metals Focus Norte mine.

32
 World Silver Survey 2024 Chapter 4: Mine Supply

The Changing Structure of Silver Mine Supply

Over the last half-decade, the global silver mining industry While silver output from primary silver, gold and lead-zinc
has encountered significant disruptions. As documented mines, has declined, increased production from copper mines
in previous editions of the World Silver Survey, annual mine has offset much of this decrease. The International Copper
supply worldwide is often influenced by unforeseen events. Study Group has calculated that copper mine supply has risen
The emergence of the COVID-19 pandemic directly resulted in by 7% over the past five years. Silver production from copper
a production loss of 53.8Moz (1,673t) in 2020. However, when mining has outpaced that increase partly due to the ramp-
considering indirect consequences, such as strained supply up or expansion of several key copper mines with significant
chains and substantial inflation in input costs, the cumulative by-product silver production. These operations include
impact over recent years has been even more pronounced. Cobre Panama in Panama, Toromocho in Peru, Khoemacau in
Botswana and Grasberg in Indonesia. Collectively these four
Additionally, social unrest in Peru during 2022 saw the country copper mines have added around 8Moz of silver production
slip to third in the global ranking of silver mining countries, with over the past five years.
China now the second-largest silver producer, a position that
Peru is not expected to regain for several years. Despite these The rise of by-product silver from copper mining introduces
challenges, global silver supply has only marginally fallen over a critical dynamic to silver supply, characterized by its
the past five years, by 2% or approximately 20.1Moz (626t). insensitivity to changes in the silver market. While silver
However, this relatively stable total hides some significant revenues can be meaningful for many copper mines they do not
changes in the composition of that supply. dictate the economics of the operation. The capital expenditure
and production plans of these mines are instead dependent on
The majority of the world’s silver originates from mines primarily the copper market.
focused on base metals, with silver being a by-product of their
operations. Primary silver mines, where silver revenues dictate This feature is further accentuated by the prevalence of
economic viability, accounted for only 28.3% of global supply in silver streaming deals for several by-product silver produced
2023. In recent years, the decline in output from primary silver from copper mines. For example, both Cobre Panama’s and
mines has persisted, reflecting and extending a longer-term Khoemacau’s entire silver production is captured under
trend. Various factors have driven this decline, with regional streaming agreements. Producers tend to enter these deals
dynamics playing a pivotal role. as silver is not dictating the mine economics, allowing them to
forgo silver revenues in an effort to lower the company’s cost
Among the major producing countries, most have either of capital. These streaming and royalty deals represent now
increased silver production or maintained a stable output. around 4% of total supply and can further dissociate silver by-
However, Peru stands out as an exception, with a significant product production (especially some of the key copper mines
decline of 39.4Moz (1,225t) over the past five years, mentioned) from silver market fundamentals.
representing a 27% decrease. This decline was mostly driven
by reduced output from the country’s primary silver mines, This dynamic has implications for a market experiencing
which experienced several key operations being suspended structural deficits amid rising demand from sectors like the
or placed on care and maintenance due to factors such as photovoltaics and automotive industries. Given that currently
community protests, supply chain challenges, social unrest, and around 71.7% of global silver mine supply is largely price
operational issues. Elsewhere, in Russia, its invasion of Ukraine inelastic, any supply response to market deficits is expected to
has posed various challenges. However, it was the decline in stem predominantly from primary silver mines, many of which
ore grade at Dukat, the largest primary silver mine in recent are located in the Americas.
years, that largely contributed to the reduction in domestic
production.

33
Chapter 4: Mine Supply World Silver Survey 2024

Primary Silver Production Costs Primary Silver Production Costs

Primary silver mining total cash costs (TCC) and all-in sustaining costs (AISC)
US$/oz (by-product*) 2022 2023 Y/Y
increased significantly in 2023 as spending on key input costs rose and fewer
North America silver ounces were produced. TCC rose by 61% to a 10-year high of $8.38/
Total Cash 5.28 9.14 73% oz, while AISC was up by 25% to $17.18/oz (to the highest in our dataset which
All-In Sustaining 15.52 19.44 25% starts in 2010). The following cost analysis considers approximately 75%
Central & South America of primary silver mine supply. These operations derive the majority of their
Total Cash 7.46 7.11 -5% revenue from silver over the life-of-mine.

All-In Sustaining 14.28 14.55 2%

Key mining input costs continued to exert inflationary pressure last year.
CIS
A tight labor market prevailed in many regions, affecting the availability of
Total Cash 9.10 12.93 42%
skilled workers. Companies had to offer higher wages and incentives to
All-In Sustaining 12.88 17.05 32%
attract and retain workers, driving up labor costs. Prices of essential raw
Asia materials, such as explosives, also contributed to higher costs as supply
Total Cash 0.14 0.56 309% chain disruption continued. In contrast, the cost of cyanide eased due to
All-In Sustaining 7.49 8.91 19% increased inventories in North America, a key supplier to Mexico and South

Oceania America. Oil and gas prices, although still high compared to two years ago,

Total Cash -5.12 3.34 na were lower year-on-year. Cost improvements were offset by the weakening

All-In Sustaining 1.45 9.81 577% of the US dollar against local currencies, particularly in Mexico and Peru
which together account for 62% of primary silver production. These factors
Global Total
impacted both operating costs and capital expenditure last year, with on-site
Total Cash 5.19 8.38 61%
costs up 15% y/y and sustaining capital expenditure up 3% y/y.
All-In Sustaining 13.76 17.18 25%
* Costs shown on a by-product accounting basis.
Many silver mines are polymetallic in nature and output includes significant
Source: Metals Focus Silver Mine Cost Service
amounts of lead, zinc, gold and/or other metals. Revenue created from these
metals reduces cash costs as by-product credits. Gold had the largest

Global Primary Silver Mine Production Costs in 2023

US$/oz (by-product*) US$/oz (by-product*)
40 40

30 30
2023 Silver Price ($23.35/oz)

20 20

10 10

0 0

-10 Total Cash Cost All-In Sustaining Cost -10

-20 -20
0 10 20 30 40 50 60 70 80 90 100
Cumulative Silver Production (%)

* Cost shown on a by-product accounting basis.

Source: Metals Focus Silver Mine Cost Service

34
 World Silver Survey 2024 Chapter 4: Mine Supply

Global Production Costs contribution to by-product credits due to higher gold sales and prices. Lead
and zinc by-product credits fell noticeably after a 24% y/y drop in the zinc
US$/oz (by-product*) price and fewer lead tons sold at silver mines. The gold price fully offset the
20 decrease in lead and zinc revenues, resulting in a marginal increase in by-
product credits. As a result, the global average AISC margin declined by 22%
18
y/y to $6.21/oz.
15
13 This year, inflationary pressure is expected to ease further as tight central
10 bank monetary policies remain broadly in place. This will help alleviate AISC
8 to some degree. However, this year-to-date the Brent crude oil price has

5 already increased by 13%, which will contribute to higher diesel and energy
costs and so keep on-site costs relatively high. By-product credits can
3
be expected to trend lower in 2024 as the zinc price continues to weaken.
0
Primary silver miners will rely more on gold by-product credits to lessen
2014 2016 2018 2020 2022
the impact of higher costs on margins. Taken together, these factors are
Total Cash All-In Sustaining expected to result in a higher AISC for primary silver miners in 2024.

*Cost shown on a by-product accounting basis

Regional Performances
Source: Metals Focus Silver Mine Cost Service
In 2023, the average TCC and AISC of operating primary silver mines in North
America rose for the fourth consecutive year respectively to $9.14/oz and
$19.44/oz. This increase was underpinned by the appreciation of the Mexican
peso against the US dollar which led to more expensive local costs in US
dollar terms.

In Mexico, average TCC and AISC stood at $9.59/oz (+91% y/y) and $19.65/
oz (+30% y/y) correspondingly. Annual local inflation fell by 2.4 percentage
points to 5.5%, but any beneficial effect was offset by the strengthening
By-Product Metal Prices of the Mexican peso as it reached its lowest point against the US dollar
since 2016. In addition, smaller lead and zinc by-product credits and higher
Index, Jan-20 = 100
200 sustaining capital expenditures at some operations also contributed to the
higher AISC. At Saucito, Fresnillo reported that its AISC had risen to $21.60/
175 oz (+29% y/y) citing all the aforementioned reasons as well as the increased
cost of infrastructure contractors. At Coeur Mining’s Palmarejo, AISC rose
150 to $17.77/oz (+14% y/y) affected by lower silver and gold production and the
impact of the stronger peso on electricity and employee-related costs.
125

In the US, local inflation eased to 4.1% and by-product credits increased
100
due to a 50% jump in gold revenues. Despite this, both TCC and AISC
75 continued to rise, to $7.02/oz (+21% y/y) and $17.76/oz (+7% y/y) respectively.
A combination of lower output, higher labor, maintenance and consumable
costs underpinned the gains in TCC and AISC at Hecla Mining’s Greens
Creek. TCC climbed to $2.53/oz (+261% y/y) and AISC to $11.23/oz (+22% y/y).
Gold Lead Zinc Copper
Also in the US, Coeur Mining benefited from its Rochester Expansion project
as higher gold and silver output helped lower TCC and AISC to $17.01/oz (-5%

Source: Bloomberg, Metals Focus y/y) and $26.50/oz (-13% y/y). The rise in gold by-product credits and silver
revenue offset higher maintenance and employee-related costs.

35
Chapter 4: Mine Supply World Silver Survey 2024

Regional Total Cash Costs In Central and South America, TCC fell to $7.11/oz (-5% y/y), but AISC rose
to $14.55/oz (+2% y/y). In Peru, there was a slight easing of inflation year-on-
US$/oz (by-product*)
year, but the Peruvian sol also strengthened against the US dollar. At Pan
15 American Silver’s Huaron mine, TCC and AISC rose to $8.62/oz (+70% y/y) and
$18.46/oz (+47% y/y) as a result of lower lead and zinc by-product credits and
10
higher sustaining capital expenditures related to underground development.
In Argentina, inflation continued to rise and the peso weakened against
5
the US dollar. Consequently, SSR Mining reported a negative impact on its
0 Argentinian peso-denominated Puna operation. TCC increased to $12.95/oz
(+5% y/y) despite record silver production, but AISC fell slightly to $16.53/oz
-5 (-2% y/y) on the back of higher silver sales.

-10
In Australia, there was a slight easing of inflation coupled with a weakening
in the exchange rate against the US dollar. At South32’s Cannington, TCC
moved into positive territory for the first time since 2020 at $3.54/oz.
AISC also rose, up to $9.81/oz (+577% y/y), as the benefits of higher silver
2015 2017 2019 2021 2023 production and the weaker dollar were offset by higher natural gas and labor
* Cost shown on a by-product accounting basis.
costs in addition to lower lead and zinc by-product revenues.
Source: Metals Focus Silver Mine Cost Service

Reserves & Resources

Global reserves at primary silver mines and projects totaled 3,466Moz
(107,812t) in 2023. This was a decline of 5.0% y/y or -182Moz (-5,658t), as
mining depletion, coupled with refined economic assumptions surpassed
resource conversions into reserves. Total identified resources, excluding
Reserve Replacement – Primary reserves, stood at 7,589Moz (236,048t). The 4.3% y/y resource increase
Silver Mines and Projects resulted from successful exploration and expansion studies.

Moz
At Fresnillo, primary silver mine reserves were reduced by 29.8Moz (-927t)
3,900
on an attributable basis. This was mainly due to mining extraction combined

+91 with higher operating costs and cut-off grades at San Julian (-17.1Moz,
-532t) and Juanicipio (-14.9Moz, -463t). Likewise, reserves at SSR’s Pirquitas
3,648
fell (-12.4Moz, -387t) due to depletion and an adjustment of economic
3,600
parameters. Pan American’s ore production at La Colorado lowered its
3,466
reserve estimates by 15.1Moz (-469.7t). Coeur have increased their reserves
-273
every year since 2018. However, by the end of 2023, silver reserves fell as

3,300
ore replacements were outpaced by higher-grade ore mining at Palmarejo
(-14.8Moz, -459t). Meanwhile, significant expansion at Rochester lifted its
mine reserves by 12.9Moz (+402t). With the inclusion of the Yumpag stope
operations, Buenaventura’s Uchucchacua reserves rose notably by 16.7Moz
3,000 (+519t). Gatos Silver reported an 8.6Moz (+267t) growth in reserves at
2022 Exploration/ Production 2023 Cerros Los Gatos through resource upgrades from its drilling campaigns.
Engineering depletion
Lastly, positive exploration results at Fresnillo’s namesake mine converted
mineral resources into ore reserves which raised them by 7.2Moz (+222t).
Source: Metals Focus

36
 World Silver Survey 2024 Chapter 4: Mine Supply

Value of Completed Deals* Corporate Activity

Last year, corporate activity in the primary silver sector was subdued. The
value of mergers and acquisitions fell to just $5m, its lowest level since our
US$m $/oz
2,000 30 dataset began in 2006.
1,750
300 25 The largest deal announced and completed was Aya Gold and Silver’s
250 acquisition of the Tirzzit Project to expand the company’s portfolio in
200 20 Morocco. Tirzzit operated as a copper mine for 12 years before its closure
150 in 2012. Historical drilling intercepted the project’s near-surface silver and
100 15 copper mineralization potential with a trucking distance of 15.5miles (25km)
50 to Zgounder. In Q4.23, several exploration activities were conducted, such as
0 10 stream sediment mapping and a high-resolution area survey. The remaining
2014 2016 2018 2020 2022
deals related to a minority investment in a silver company and a small
acquisition were sold at an undisclosed value.
Value
Average Silver Price (RHS)
A total of $117m worth of deals in cash and shares announced in 2022 were
also completed during 2023. This included First Majestic’s divestment of the
* Values aggregated in the year deals are announced.
La Parrilla Mine Complex to Golden Tag Resources (subsequently renamed
Source: Bloomberg
Silver Storm Mining) for $22m. Upon completion of the acquisition in August
2023, estimated silver resources at La Parrilla stood at 11.2Moz (349t).
Technical studies and mine plans for the eventual restart of mining and
processing is anticipated in Q4.24. In addition, Metals Acquisition purchased
$90m worth of silver streams in Australia from Osisko Gold.

Producer Hedging
In 2023, the global delta-adjusted producer hedge book fell for the fourth
consecutive year, to an estimated 8.0Moz (250t), down by 12.2Moz (379t) y/y.
Forward contracts fell by 36% y/y to 5.7Moz (178t) as all producers except
for Coeur Mining, Harmony and Peñoles reduced their hedge books. Options
contracts dropped by 80% y/y to 2.3Moz (72t).

Hedge Book Composition* Coeur Mining, Harmony, Minera Frisco and Peñoles were the only companies
Million ounces 2022 2023 Y/Y with open positions at year-end. Notably, the majority of outstanding hedges
Forwards 9.0 5.7 -36% at the end of Q4.23 covered just 12 months of production, falling back from
Options 11.3 2.3 -80% the more typical 18-24 months. Harmony was the exception, with options
Total 20.2 8.0 -58% covering production at Hidden Valley out to Q2.25.

*Estimated delta-adjusted positions at year-end

Only Coeur Mining and Harmony increased their hedge positions during the
Source: Metals Focus year. During Q4.23, Coeur added 3.1Moz (96t) of forward contracts to protect
cash flow during the ramp-up of the Rochester expansion. These contracts
will be settled monthly throughout H1.24 and have a weighted average strike
price of $25.16/oz. At year-end, Coeur recorded these contracts as an asset
with a fair value of $3.3m. Harmony’s hedge book stood at 1.2Moz (36t) at the
end of Q4.23, up 97% y/y. These hedges protect cash flow while the Stage 8
cut-back is underway at Hidden Valley.

37
Chapter 4: Mine Supply World Silver Survey 2024

Hedge Book Evolution* Peñoles further reduced their hedge book in 2023. By end-Q4.23, the
company’s outstanding hedge position was 4.1Moz (128t), down 72% y/y.

Moz $/oz
Of this, 1.4Moz (45t) were in option contracts with prices of $21.70/oz and
40 30 $32.23/oz for its puts and calls respectively. Outstanding bought forwards
stood at 0.2Moz (5t) and sold forwards at 2.5Moz (79t). These contracts had
30 25 average strike prices of $24.13/oz and $24.36/oz respectively. Minera Frisco
had outstanding options of 2.5Moz (90t), down 14% y/y. Average prices

20 20 for the puts and calls were $20.36/oz and $32.53/oz respectively and the
company reported a negative fair value of 3.7m Mexican pesos at year-end.

10 15

0 10
Silver Streaming
2014 2016 2018 2020 2022 Silver production covered under streaming and royalty contracts declined

Delta-Adjusted Options by 16% y/y to 35.1Moz (1,091t). Consequently, the proportion of mine supply
Forwards covered by these contracts fell to 4.2%, marking its lowest level since 2014.
Silver Price

This was driven by reduced volumes from two pivotal mines, Peñasquito and
* Estimated delta adjusted position at year-end
Antamina. Over the past five years, these mines have accounted for more
Source: Metals Focus
than one-third of all streaming and royalty volumes. Consequently, the 40%
decline in production from Peñasquito and the 23% drop from Antamina
had a substantial impact on overall volumes. Antamina’s production was
hampered by lower grades and disruption caused by Cyclone Yaku, while
Peñasquito was temporarily suspended due to a four month long strike.

Both Peñasquito and Antamina are integral components of Wheaton Precious

Metals’ silver portfolio. Consequently, lower output from these mines led
to company volumes declining by 6.9Moz (214t) y/y. This caused Wheaton
Silver Royalty and Streaming Precious Metals’ market share, which represented around 75% of the market
over 2010-2020, to fall below 50%. Franco-Nevada, the second largest
Moz % of global supply producer, also saw output fall by 0.9Moz (28.2t) y/y, largely due to a 22.5%
50 6% silver stream from Antamina. Conversely, most other companies increased

5% output. Triple Flag, for instance, saw a 0.4Moz (13t) y/y increase, mostly due
40
to the realization of volumes from their 2022 Maverix Metals acquisition. This
4%
30 growth propelled Triple Flag to become the third-largest silver royalty and
3% streaming company by volume.
20
2%
New agreements inked in during 2023 include Wheaton Precious Metals’
10
1%
stream for the life-of-mine silver production from Waterton Copper Corp’s
0 0% Mineral Park project, for $115m. Elsewhere, Osisko increased its share of
2014 2016 2018 2020 2022
silver from Taseko’s Gibraltar mine, purchased under the stream, to 87.5%, at
Others Fresnillo
a cost of $10.25m.
Triple Flag Royal Gold
Franco-Nevada Wheaton P.M.
% Streamed (RHS)*
This year, the anticipated recovery of production at Peñasquito, following last
year’s strike, is expected to drive growth in streaming and royalty volumes.
*Percentage of global mine supply covered by royalty and
streaming agreements.
Source: Metals Focus

38
 World Silver Survey 2024 Chapter 5: Recycling

Chapter 5
Recycling
– Silver recycling grew by just 1% to a 10- Introduction
year high of 178.6Moz (5,556t) in 2023. Total recycling in 2023 inched up by 1% to a 10-year high of 178.6Moz
(5,556t). As in 2022, this increase was primarily driven by industrial scrap,
– Industrial scrap rose by 3% thanks largely itself largely due to growth in the recycling of ethylene oxide (EO) catalysts.
to higher receipts from spent EO catalysts. There was also a rise for jewelry scrap, but only by 1% as price-led gains in
India were countered by sluggish volumes in many other countries. India also
– Jewelry recycling rose by just 1%, while saw growth in silverware scrap, but losses elsewhere and depleted near-
silverware fell by 2% despite India’s gains. market western stocks meant a 2% drop for the global total for scrapped
silverware. Photographic recycling saw further structural losses (of 7%),
– Photographic recycling’s losses continued while coin scrap (chiefly the remelt of unsold commemorative coins) saw
last year with a fall of 7%. European-centered growth of 3%. That sector plus jewelry and silverware are
all expected to see losses in 2024 due to such drivers as limited economic
– Scrap in 2024 is forecast to be stable as distress. Photographic scrap should also see a further structural fall. It is only
industrial gains offset losses elsewhere. industrial recycling that will grow (again mainly due to higher EO receipts), but
that should only lift the total for all recycling by a trivial 0.1%.

Industrial
Industrial silver recycling rose last year, up 3% to a record high of 99.4Moz
(3,090t). As was the case in 2022, much of this was due to greater recovery
from spent EO catalysts. This in turn largely reflects regular changeouts in a
field that has seen robust capacity growth (this capacity is now estimated to
total almost 51,000t versus only just over 25,000t in 2010).

Other industrial areas saw gains due to long standing drivers such as a
growing pool of product and better enforced or stricter environmental
controls. However, the rise was small, partly due to the limited boost from
prices in price-sensitive areas. The first two drivers above look to have led
to notable gains in the gross volume of electronic scrap being processed
by the formal sector. However, much of this was outweighed by a large fall in
Global Recycling Forecast yields as the newer generation of PCBs coming through for recycling have a

by Region much lower silver content than before. The pool of end-of-life photovoltaic
panels is also becoming more visible. However, our sources report that silver
recovery from this sector remains slight. This is due to processing of these
Million ounces 2023 2024F Y/Y
panels usually remaining uneconomic, despite various developments that
Europe 31.7 31.0 -2%
have reduced energy and chemical use in the recycling process.
North America 44.0 44.6 1%
Middle East 6.6 6.2 -6%
For 2024, we are expecting another year of 3% growth for industrial scrap to
South Asia 19.6 19.8 1%
a new high that accounts for 57% of total recycling compared to a low of 38%
East Asia 55.6 56.3 1% in 2011. Much is again due to higher receipts from spent EO catalysts. One
CIS 12.3 12.6 2% area of concern is that the drop in e-scrap’s silver yields is also being seen
Other 8.8 8.3 -5% for gold and it is the latter that drives the profitability of this sector. That,
Global Total 178.6 178.9 0% however, may not materially limit e-scrap volumes this year and, either way,

Source: Metals Focus

e-scrap’s contribution to total industrial recycling is modest.

39
Chapter 5: Recycling World Silver Survey 2024

Global Recycling Jewelry

Jewelry scrap in 2023 rose by just 1% to 34.5Moz (1,074t), although that
Moz US$/oz
200 30
still meant an 11-year high. The only growth of note came from India, where
volumes reacted to high local prices and some economic distress in rural
areas. Most countries in contrast saw stagnant volumes as prices were
150 25
seen as uninteresting and in the broad absence of economic hardship.
The latter also meant few examples of remelt of unsold pieces coming in
100 20 from manufacturers and distributors. In the absence of economic crises
developing in the major economies and unless silver prices rally very steeply,
50 15 we expect global jewelry scrap this year to dip by 3% to a four-year low.

0 10 Silverware
2014 2016 2018 2020 2022 Despite the 7% rise in US$ prices, global silverware recycling fell by 2% to
Europe N America a three-year low of 23.8Moz (742t). Western volumes were broadly stable,
E Asia M East
although feedback was very mixed. Some refiners saw growth, mainly
S Asia Others
Silver Price towards year-end, due to cost of living problems and during price rallies.
Others saw sluggish volumes, a situation blamed on depleted near-market

Source: Metals Focus, Bloomberg

stocks. The only rise of note was in India thanks to robust local prices and
pockets of rural hardship. We currently forecast the global figure to fall by 3%
in 2024, an outcome partly premised on India seeing a normal harvest.

Photography
Photographic recycling continued its relentless slide in 2023, falling 7% to a
record low (basis our series) of 17.2Moz (536t). That put the sector’s share of
the global total fell below 10% for the first time (compared to 21% in 2010).
This retreat remains chiefly due to lower receipts of old medical x-rays as
the digitization of archives is now slowing and fewer analog x-rays are being
taken. In contrast, industrial x-ray scrap was stable as this sector resists
digitization. Silver recovered from consumer film and processing liquids was
also flat y/y as this field has now stabilized (see chapter 8). This broad story is
expected to be repeated in 2024, with the total again down 7% to another low.

Recycling by Source
Year on Year

Million ounces 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F 2023 2024F
Industrial 71.0 72.1 75.0 78.6 78.0 82.9 91.5 96.4 99.4 102.6 3% 3%
Photographic 28.6 26.4 24.5 23.1 21.6 21.0 20.0 18.5 17.2 16.1 -7% -7%
Jewelry 22.6 23.5 23.9 24.1 24.9 33.2 34.4 34.2 34.5 33.6 1% -3%
Silverware 21.3 20.4 20.2 19.6 20.2 23.8 24.3 24.2 23.8 23.1 -2% -3%
Coin 3.5 3.3 3.6 3.3 3.4 3.4 3.5 3.6 3.7 3.4 3% -8%
Global Total 147.0 145.7 147.2 148.7 148.2 164.3 173.7 176.9 178.6 178.9 1% 0.1%

Source: Metals Focus

40
 World Silver Survey 2024 Chapter 5: Recycling

Recycling

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Europe
Germany 10.2 9.9 9.7 9.4 9.8 9.9 9.6 9.7 9.8 10.3 5%
Italy 6.6 5.8 5.5 5.2 5.0 5.1 4.8 4.8 4.6 4.6 1%
UK 5.8 5.6 5.4 5.3 5.1 5.0 4.8 4.5 4.3 4.1 -5%
France 4.3 3.8 3.4 3.2 3.1 3.1 3.1 3.3 3.2 3.2 -1%
Others 10.2 9.4 9.4 10.3 9.4 9.5 9.5 10.0 10.3 9.5 -8%
Sub-total 37.2 34.5 33.4 33.4 32.5 32.6 31.7 32.4 32.1 31.7 -1%

CIS
Russia 8.0 6.7 6.5 7.9 10.0 8.5 9.3 10.3 11.3 10.2 -10%
Others 1.8 1.4 1.4 1.7 1.9 1.8 2.0 2.2 2.4 2.2 -10%
Sub-total 9.8 8.1 8.0 9.6 11.9 10.3 11.3 12.5 13.7 12.3 -10%

North America
United States 43.6 40.7 38.1 38.4 38.4 38.1 39.3 41.2 41.4 39.9 -4%
Others 4.7 4.1 4.1 4.0 4.0 4.0 4.1 4.3 4.4 4.1 -6%
Sub-total 48.3 44.8 42.1 42.4 42.4 42.1 43.5 45.4 45.8 44.0 -4%

Middle East
Turkey 3.4 2.5 2.5 2.5 2.7 2.7 2.5 2.7 2.2 2.3 5%
Others 3.7 3.0 3.5 3.5 3.0 3.2 3.8 4.6 4.0 4.3 7%
Sub-total 7.1 5.5 6.0 6.0 5.7 5.9 6.3 7.3 6.2 6.6 6%

South Asia
India 7.5 4.6 4.9 5.4 6.3 6.6 15.9 14.7 15.4 17.0 10%
Others 0.5 0.3 0.3 0.4 0.5 0.5 2.6 2.2 2.3 2.6 11%
Sub-total 7.9 5.0 5.2 5.8 6.8 7.1 18.5 16.9 17.8 19.6 10%

East Asia
China 22.3 23.2 23.1 22.8 23.0 23.7 26.1 31.4 34.8 39.3 13%
Japan 11.0 11.0 11.4 11.4 10.9 10.5 10.0 9.5 9.1 8.7 -4%
Taiwan 3.3 2.6 3.0 2.8 2.6 2.9 2.9 3.0 2.7 2.3 -14%
Others 5.2 4.6 5.3 4.7 4.7 4.9 5.4 6.0 5.6 5.4 -5%
Sub-total 41.8 41.4 42.7 41.7 41.2 41.9 44.4 49.9 52.2 55.6 7%

Other Regions
C&S America 3.5 3.1 3.4 3.5 3.5 3.6 3.8 4.2 4.4 4.0 -9%
Africa 3.0 2.8 2.8 2.9 2.8 2.9 3.0 3.6 3.2 3.3 3%
Oceania 2.1 2.0 2.0 1.9 1.9 1.9 1.7 1.6 1.6 1.5 -5%
Sub-total 8.5 7.8 8.2 8.3 8.3 8.3 8.6 9.3 9.2 8.8 -4%

Global Total 160.5 147.0 145.7 147.2 148.7 148.2 164.3 173.7 176.9 178.6 1%

Source: Metals Focus

41
Chapter 6: Bullion Trade World Silver Survey 2024

Chapter 6
Bullion Trade
– Although Indian imports collapsed by Introduction
63% to 111.7Moz (3,475t) in 2023, this Last year saw the return of somewhat more normal bullion trade flows
represented just a two-year low. in several key silver consuming and fabricating markets, which for some
meant sharp year-on-year changes. One of the highest profile examples
– UK exports suffered a similar decline was in India where bullion imports returned to a more recognizable 111.7Moz
last year, with the 68% drop to 118.0Moz (3,475t), following 2022’s record high of 303.8Moz (9,450t). Looking below the
(3,671t) also its lowest since 2019. headline figures, it was also revealing to see the UAE become the third largest
supplier to India last year, a reflection of the recently agreed Comprehensive
– Despite weaker retail investment, US Economic Partnership Agreement (CEPA) between the two countries. This
imports rose by 7% to 169.8Moz (5,280t). could quickly see the UAE rival the UK and Hong Kong as the foremost
source of silver for India (see the Focus Box on page 45). The sharp drop in
– Exports from mainland China achieved the Indian imports, and the gains made by the UAE, had a noticeable effect on UK
second highest total on record, rising by exports, which also returned to more normal levels after 2022’s record level.
4% to 131.3Moz (4,083t).
The decline in UK exports last year also reflected a slightly more subdued
physical investment market (covering coin and bar demand) in the US. This
helps explain the drop in shipments to Canada, Switzerland and Turkey, with
each either delivering bullion to be fabricated in the US, or an investment
product for its retail investment market. Looking at US bullion imports reveals
a broadly similar picture, with weaker deliveries from Turkey and Switzerland
last year also being quite noticeable.

From an industrial demand standpoint, the drop in Japanese bullion imports

to a multi-decade low in 2023 of 44.5Moz (1,385t) was also noteworthy. This
may surprise, as East Asian silver industrial offtake rose by 25% last year.
However, it was telling that Chinese offtake surged by 44%, while Japanese
demand was unchanged, a reflection of ongoing market share gains in favor

UK Bullion Exports* of mainland China.

Moz
Europe
140 Following the sharp drawdown in LBMA silver vault stocks in 2022, last year
120 saw a slight rise through to September. This owed much to developments in
India, which in 2022 had taken massive quantities from London (and entirely
100
by air freight, itself almost unheard of). By contrast, last year saw this outflow
80
return to more normal levels until October that is, when the Indian market
60 burst into life resulting in a then record import total. The overall weakness in

40 India last year also contributed to a massive jump in Chinese deliveries into
London, which appeared to have touched a record high in 2023. Overall, there
20
was therefore only a slight rise in London stocks, which at end-2023 stood at
0 856.2Moz (26,631t), compared with 840.9Moz (26,155t) the year before.
Q1.20 Q1.21 Q1.22 Q1.23
India N America Others The other driver of changes in LBMA silver holdings last year and, by
Source: Metals Focus, S&P Global; *Gross weight extension, UK trade flows, were weaker physical investment markets in the

42
 World Silver Survey 2024 Chapter 6: Bullion Trade

US Bullion Imports* US and Europe. With regards to the latter, Germany switched from being a
net importer of large bars from the UK in 2023 (to convert into investment
Moz
products) to a net supplier to London for the first time since 2019. Overall
80 UK exports in 2023 fell 68% to 118.0Moz (3,671t), to a four year low. The
75% jump in UK bullion imports to 131.8Moz (4,098t) represented a two-
60 year high.

40 The impact of softer US retail bar and coin demand resonated far more in
Switzerland and Turkey (two fairly new bullion suppliers to the US) rather
than with those in North America. This helps explains why UK exports to
20
Switzerland returned to more levels last year, after the massive surge to
a 14-year high in 2022. In terms of UK-Turkey bullion flows, 2022 had seen
0
the first ever, sizable import of metal from London, to service the US retail
Q1.20 Q1.21 Q1.22 Q1.23
market. However, these also fell sharply in 2023 as US demand for Turkish
Mexico Canada Others
bar products eased. That said, this also reflected market share changes,
with Turkish bullion imports from Switzerland reaching a new high in 2023.
Source: Metals Focus, S&P Global; *Gross weight
A jump in exports to Switzerland was seen for Italy, this being the largest
element in the latter’s increase in bullion exports of 65% in 2023 to
23.6Moz (773t). Italian imports also rose, but by a more modest 12% to
33.7Moz (1,047t), meaning net imports fell by 36%.

North America
Last year, the trend in US bullion imports largely reflected developments
in the country’s physical investment returning to more normal levels.
Even though total imports rose 7% to 169.8Moz (5,280t), two of the more
noteworthy changes were the 39% and 34% declines for imports from
Turkey (to 8.1Moz/252t) and from Switzerland (to 2.3Moz/70t). During the

Indian Silver Bullion Imports* recent jump in US coin and bar demand, both countries had emerged as
key suppliers of investment bars, having had little previous involvement in
Moz $/oz the US. However, as investment weakened last year, there was less need
90 0.8 to bring in Turkish or Swiss products. In contrast, Mexican exports to the
80 0.6 US recovered last year, by around 12%. This was the main reason for the
70 0.4 rise in total US imports in 2023.
60 0.2
50 0.0 Middle East
40 -0.2 Middle East bullion exports rose by 76% in 2023 to 57.9Moz (1,800t),
30 -0.4 having already increased 135% the previous year. This was mostly due to
20 -0.6 an eightfold increase in exports from the UAE, mainly due to India, thanks
10 -0.8 to the Comprehensive Economic Partnership Agreement (CEPA) deal
0 -1.0 between the two countries. In contrast, Turkish exports declined by 4%
Jan-21 Jan-22 Jan-23 Jan-24 (with falling shipments to the US) but they remained elevated at 28.3Moz
Bullion Imports Premium/Discount (880t). The region’s bullion imports remained robust in absolute terms
but declined slightly by 2% to 64.8Moz (2,014t), with the drop in Turkish
inflows met by an increase in UAE demand. The CEPA is expected to be
Source: Metals Focus, S&P Global; *Gross weight the main driver of bullion flows in 2024.

43
Chapter 6: Bullion Trade World Silver Survey 2024

Indian Silver Net Balance* South Asia

From a record high of 303.8Moz (9,450t) in 2022, Indian silver bullion imports
Moz slumped by 63% to 111.7Moz (3,475t) in 2023. More normal levels of demand
80 and high prices underpinned the decline. India also increased the duty on
60 silver bars from 10.75% to 15% and the duty on silver doré from 9.21% to
Surplus 14.35%, which contributed to the surge in domestic (landed) prices. Another
40
key factor that impacted imports was the high carryover stock from the
20
previous year. Metals Focus estimates that some 800-1,000t was lying in
0 vaults at the end of 2022. As a result, bullion imports in H1.23 remained
-20 subdued and only picked up during the festive period in H2.23. Almost half

-40 (58.8Moz/1,829t) of the imports were brought in during October (a record

Deficit
high at the time) as demand started to recover.
-60

-80 Silver imports were unexpectedly dominated by three suppliers last year, the
2014 2016 2018 2020 2022
UK (42%), Hong Kong (27%) and the UAE (12%). The UAE’s surprise market
share was entirely because of the recently agreed India-UAE CEPA. Due
*Balance = net bullion imports + scrap + mine production –
to the concessional duty structure that applies under the agreement, the
all fabrication – physical investment
Source: Metals Focus
dynamics of the Indian bullion trade are changing rapidly. Apart from the UAE
becoming a bigger supplier to India, silver grain is also gaining share in the
overall import mix due to value addition norms under the CEPA (see the Focus
Box below).

India-UAE CEPA and its Impact on the Silver Import Landscape

The India-UAE Comprehensive Economic Partnership made the UAE-India route profitable. In other words, while those
Agreement (CEPA) signed in 2022 has significantly changed delivering silver to India outside the CEPA faced the new 15%
India’s import landscape. Under this agreement, the import duty, imports under CEPA attracted a 9% duty in the second
duty on silver bullion from the UAE will fall by 1% each year, year of the agreement. With the duty differential now at 6%,
until it reaches zero in 2031. However, to qualify under the imports under CEPA became far more attractive. As a result,
CEPA, the silver requires a Certificate of Origin (COO) and a 3% 13.6Moz (422t) of silver was imported into India in 2023. The
Value Addition (VA). To fulfill this, the importer must provide momentum has continued in 2024, with the first two months
documents to prove that the silver has been refined in the UAE witnessing inflows of nearly 42Moz (1,300t).
and that it has undergone this VA. As the UAE does not mine
silver, local refineries are converting bars into grain, processing Looking ahead, the duty under CEPA will fall to 8% starting April
the metal to ensure it meets the 3% VA. 2024 and so the duty differential will continue to widen. In the
absence of any policy change or a reduction in Indian import
While the CEPA came into effect in 2022, imports under this duties for the rest of the world, the UAE is expected to remain
deal only started to ramp-up last year. To provide context, given the biggest supplier of silver to India in the coming years. Within
the 3% VA, silver imports from the UAE into India were unviable the import mix, grain will dominate, gaining market share from
unless the duty differential between regular Indian imports London Good Delivery bars. That said, while this will not affect
and CEPA exceeded 3%. This was not the case in 2022, as duty the overall total it will impact where the metal comes from as
outside the CEPA was 10.75% whereas the duty under the trade silver that used to come to India from the UK, and Hong Kong
deal was 10%. However, the Indian government’s decision to now makes its way into the country after undergoing VA in the
raise the import duty (outside CEPA) to 15% in February 2023 UAE for importers to benefit from the duty differential.

44
 World Silver Survey 2024 Chapter 6: Bullion Trade

Chinese Bullion Exports* Turning to this year, India has already imported 94Moz (2,921t) of silver
in the first two months, with the rupee price easing. February’s Inflows
Moz US $/oz reached a new high of 71Moz (2,211t), beating the October 2023 record.
20 3.0
2.5 East Asia
15 2.0 China has traditionally been a net exporter of silver due to the metal’s
1.5 structural oversupply in the local market. This is fueled by large volumes of
10 1.0 refined silver produced from imported base metal concentrates and from
domestic mines, whose output ranks second globally.
0.5
5 0.0
Bullion exports from mainland China increased by 4% in 2023 to 131.3Moz
-0.5
(4,083t), the second highest on record. This partially reflected a post-
0 -1.0
COVID rebound, when refining had been affected by the disease’s
Jan-21 Jan-22 Jan-23
Bullion Exports outbreak and pandemic prevention measures in Q1.22. In addition, falling
Premium/Discount lead and zinc concentrate processing fees meant refineries switched
to importing silver concentrates to buoy profits. This business is often
Source: Metals Focus, S&P Global; *Gross weight conducted via ‘processing trades’, from which refineries can benefit
from import VAT of zero on the silver content as long as they re-export
the refined silver bullion (otherwise, 13% import VAT is levied on the total
value of the silver content). The high production of refined silver bullion
and weak demand from India saw UK bullion imports from mainland China
hit a record high of 50.8Moz (1,581t) last year. It is worth noting that even
though the local premium spiked in mid-September, exports in Q4.23
remained solid due to the sharp recovery in Indian imports. The strong
outflows were reflected in stock declines at the Shanghai Gold Exchange
and Shanghai Futures Exchange where inventories fell by 39% y/y, or
53.5Moz (1,664t), to a six-year low of 84.7Moz (2,634t) by end-2023.

Hong Kong Bullion Exports* Metals Focus’ estimates of bullion imports into mainland China (which
includes adjustments to certain reported flows) surged by 49% to 9.4Moz
Moz (291t). The percentage growth was flattered by the low base in 2022. In
80 volume terms, bullion imports last year were close to pre-pandemic levels,
partly reflecting the post-COVID recovery in the industrial sector.

60
Hong Kong bullion imports rose by a further 8% to a record high of
118.3Moz (3,679t). Mainland China remained the largest bullion supplier
40
to the Hong Kong market, even though shipments from there fell by 11%
or 10.7Moz (332t) to 83.9Moz (2,611t). These losses were more than offset
20 by the rebound in shipments from Taiwan and Russia. Bullion exports also
recorded notable growth of 26% to 196.3Moz (6,106t). The UK became the
0 largest export destination for Hong Kong, up by 319% to 65.7Moz (2,044t),
Q1.20 Q1.21 Q1.22 Q1.23 as major bullion banks sent good delivery bars to London when demand
India Australia Taiwan Others from India was lackluster in the first three quarters of the year. However,
shipments to the UK slid in the last quarter when Indian demand resumed.
That said, overall annual exports to India still recorded a dramatic decline
of 53% to 36.2Moz (1,127t).
Source: Metals Focus, S&P Global; *Gross weight

45
Chapter 7: Industrial & Photography World Silver Survey 2024

Chapter 7
Industrial & Photography
– Industrial demand rose 11% in 2023 to Industrial Demand
another record high of 654.4Moz (20,353t).
Introduction
– Electronics & electrical demand grew by Industrial silver demand rose by 11% to 654.4Moz (20,353t) in 2023, posting
20% thanks to green-related applications, another record high. This was mainly due to the structural gains from green
steady gains in its core end-uses and economy applications, particularly in the photovoltaic (PV) sector. It was
limited thrifting. Brazing alloys rose by 2%, PV’s capacity additions, well above expectations and accelerated adoption
while Other Industrial offtake fell by 5% as of new generation cells, that helped drive the significant growth of 20% for
gains from EO capacity expansions were electronics & electrical demand. Strength in other green-related applications,
dragged down by lower changeouts. including power grid constructions and the automotive sector, also assisted
here. However, consumer electronics faced a lackluster performance as it
– Offtake is expected to grow by a further had to cope with the macroeconomic challenges and elevated inventory
9% to another high in 2024, thanks to issues. Silver demand for ethylene oxide (EO) catalysts remained robust as a
such drivers as rising PV end-use and a result of solid gains from the capacity expansion. Brazing alloys rose by 2%
recovery in consumer electronics. thanks to gains in mainstream end-uses including automotive, aerospace and
shipbuilding in most major industrial countries.

Underpinning these overall gains was the limited scale of thrifting and
substitution as silver remains irreplaceable in many applications and due to
relatively rangebound prices. Indeed, there are examples where silver use per
unit rose, most obviously in the above-noted new generation PV solar cells.

We forecast industrial demand gains of 9% this year to another record high.

All market segments are expected to see increases as the global economy
continues to enjoy modest growth, but gains will be primarily driven by end-
use in the green economy, and also helped by a resurgence in consumer
electronics. However, the strong gains in PV over the past two years may be
hard to sustain as installations start to plateau, while geopolitics and trade
disputes have the potential to disrupt our forecast.

Europe
Industrial demand in Europe fell by a steep 15% in 2023 to a seven-year low of
Global Industrial Demand 74.0Moz (2,302t). However, that was mostly caused by one-off losses in the
Forecast UK. If we exclude that country, demand elsewhere in the region rose by 1%.

Million ounces 2023 2024F Y/Y One of the key drivers of non-UK results was overall stability in silver’s
Europe 74.0 90.2 22% end-use in electrical applications. On the positive side was a good year for
North America 134.2 138.9 3% commercial construction, ongoing decarbonization (PV panel installations
South Asia 41.4 43.0 4% and retooling of factories for battery electric vehicle production) and solid
East Asia 389.5 422.7 9% gains for circuit breakers going into data centers. There were also gains
Others 15.3 16.1 5% in the automotive industry - light vehicle output rose by 14%, while the
Global Total 654.4 710.9 9% production of silver-hungry BEVs jumped by 45%. However, sources feel
that gains accruing to European fabricators were lower than these headline
Source: Metals Focus

46
 World Silver Survey 2024 Chapter 7: Industrial & Photography

Industrial Demand

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Europe
Germany 27.1 26.1 26.3 27.0 27.9 26.0 30.5 35.5 30.9 31.2 1%
France 9.1 8.6 8.4 8.7 9.1 9.3 8.5 9.6 10.3 10.9 6%
Italy 8.5 8.5 8.4 8.7 9.1 9.2 7.8 9.2 9.6 9.6 0%
United Kingdom 16.1 14.8 15.8 19.1 20.1 22.2 23.2 25.6 23.2 9.5 -59%
Others 12.2 11.9 12.0 12.4 12.7 12.6 11.6 12.9 13.1 12.8 -2%
Sub-total 73.0 70.0 70.9 76.0 78.9 79.4 81.5 92.8 87.1 74.0 -15%

North America
United States 88.2 90.9 108.9 112.0 115.1 112.9 115.5 121.8 127.0 128.1 1%
Others 4.6 5.7 6.0 5.6 5.7 5.9 5.0 5.4 5.7 6.1 5%
Sub-total 92.7 96.6 114.9 117.6 120.8 118.8 120.4 127.3 130.5 134.2 1%

South Asia
India 37.9 35.7 35.9 37.3 40.2 37.8 26.7 34.2 42.6 41.4 -3%
Sub-total 37.9 35.7 35.9 37.3 40.2 37.8 26.7 34.2 42.6 41.4 -3%

East Asia
China 106.0 113.8 114.0 128.2 133.8 134.4 131.4 150.3 181.4 261.2 44%
Japan 87.0 90.5 104.6 118.3 103.2 108.7 109.5 113.2 98.3 98.0 0%
South Korea 20.2 19.0 18.0 19.1 19.1 18.4 17.4 18.7 20.2 19.5 -3%
Taiwan 10.5 10.2 10.0 9.4 9.7 8.8 9.0 9.5 9.9 9.4 -5%
Others 1.0 1.2 1.3 1.2 1.2 1.3 1.1 1.2 1.3 1.4 6%
Sub-total 224.7 234.7 247.9 276.2 267.1 271.6 268.5 293.0 311.1 389.5 25%

Other Regions
C&S America 7.0 6.9 7.2 6.5 4.1 2.8 1.7 1.9 2.0 2.0 -2%
Middle East 6.9 6.4 5.8 6.0 6.0 5.7 4.9 5.2 5.9 6.4 9%
Oceania 4.4 4.3 4.4 4.2 4.4 4.5 3.6 4.2 4.5 4.4 -3%
CIS 1.9 1.5 1.6 1.6 1.7 1.8 1.5 1.8 1.5 1.6 5%
Africa 1.3 1.0 0.9 0.9 1.0 1.0 0.9 0.9 1.0 0.9 -3%
Sub-total 21.5 20.1 19.9 19.3 17.1 15.8 12.5 14.0 14.9 15.3 3%

Global Total 449.8 457.1 489.5 526.4 524.2 523.5 509.7 561.3 586.0 654.4 11%

Breakdown of Industrial Demand by Sector

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y
Electrical/Electronics 269.8 272.3 308.9 339.7 331.0 327.3 322.0 351.2 371.3 445.1 20%
Brazing Alloys 53.4 51.1 49.1 50.9 52.0 52.4 47.5 50.5 49.2 50.2 2%
Other Industrial 126.6 133.7 131.5 135.8 141.2 143.8 140.2 159.6 167.8 159.0 -5%

Source: Metals Focus

47
Chapter 7: Industrial & Photography World Silver Survey 2024

Global Industrial Demand numbers due to such factors as Germany’s high energy costs and imported
components taking market share. Also on the negative side was weakness in
Moz
700 residential construction and associated losses in domestic white goods. All

600
this was exacerbated by the running down of excess inventories, a process
the contributed to notable weakness in the second half of 2023.
500

400 Non-photographic nitrates saw gains last year through rising end-use in
300 such diverse areas as defense and mirrors (an area where sources have

200
seen a move back to silver as aluminum alternatives proved disappointing).
Some contacts also report notable gains in new areas such as printing onto
100
stretchable or moldable surfaces, although their contribution in weight terms
0 at present remains modest. In contrast, brazing alloy fabrication fell notably
2014 2016 2018 2020 2022
last year due to such drivers as the running down of buffer stocks and lower
Brazing Alloys & Solders
exports of silver-bearing equipment into the Middle East.
Electrical & Electronics
Others
The one-off swings noted earlier for the UK largely relate to a sharp fall in
export-related orders last year. A reversal for the UK largely explains why
Source: Metals Focus we currently forecast a bounce back of a robust 22% this year for European
offtake (to the second highest level in our series). A more representative
figure (growth excluding the UK) stands at 3%. This is better than last year as
the one-off of supply chain destocking should not get repeated and the key
German economy is forecast to swing from contraction to slight growth.

North America
Industrial fabrication in North America last year grew by just 1% but in doing
so reached a 12-year high of 134.2Moz (4,174t). Most segments saw modest
gains, with the exception of powders for the PV industry and the production
of EO catalysts, both of which saw small losses.

The largest segment, electronics and electrical demand, rose by 2% in 2023.

Much was due to ongoing gains for core sectors such as contacts thanks to

Electrical & Electronics Demand

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

China/Hong Kong 65.2 67.2 70.3 85.2 88.7 88.1 80.8 90.0 124.4 195.6 57%
Japan 73.6 75.8 91.0 104.2 88.9 94.3 96.6 98.6 83.2 82.5 -1%
United States 44.2 46.9 65.0 66.9 68.7 65.6 66.6 70.8 73.9 75.6 2%
Germany 18.2 17.3 17.7 18.3 19.0 17.1 21.4 25.7 20.6 20.9 2%
India 14.3 13.6 13.8 14.3 15.3 13.6 11.7 14.9 17.2 18.2 6%
South Korea 9.3 8.5 8.3 8.6 8.4 7.9 7.4 7.9 8.7 8.6 -1%
Others 45.1 42.9 42.9 42.3 42.0 40.7 37.4 43.2 43.3 43.8 1%
Global Total 269.8 272.3 308.9 339.7 331.0 327.3 322.0 351.2 371.3 445.1 20%
of which Photovoltaics 52.0 59.6 81.6 99.3 87.0 74.9 82.8 88.9 118.1 193.5 64%

Source: Metals Focus

48
 World Silver Survey 2024 Chapter 7: Industrial & Photography

Global Light Duty Vehicle a still robust economy and a good year for the construction industry. Another
sector of importance to silver, the automotive industry, also saw a rise in light
Production & BEV share
vehicle output of 10%. End-use within the sector had the potential for yet
m. units
100 12% faster gains thanks to rising vehicle sophistication. This includes features
such as heated seats, front windshield defogging or heads-up displays, all of
10%
80 which need silver. Of particular help was the 42% rise in BEV output as these
8% vehicles need much more silver than ICE equivalents. The green economy
60
further benefited silver by the linked investment in power distribution
6%
for vehicle charging, solar panel installations and so forth. End-use in 5G
40
4% equipment also rose while newer areas such as wearable applications saw
20 gains, although their contribution in weight terms remains modest at the
2%
moment. Lastly, non-photographic nitrates output held up well.
0 0%
2016 2018 2020 2022
Not all was positive as consumer electronics were lackluster and PV-related
Others China powder demand fell. Also, improved logistics in the first half of the year meant
Japan Europe
the supply chain tended to run down safe-guarding inventories, while stocks
N. America Global BEV Share
look to have been further trimmed in the second half due to recession fears.

Source: LMC Automotive, a GlobalData Company

Brazing alloy and solder demand grew by a modest 2% thanks to higher
end-use in the PV sector, aerospace / defense and the automotive industry
(especially in BEVs). In contrast, our category of other industrial fabrication
saw a dip of 1%. This was mainly due to EO and a return to more normal
change-out levels last year following a post-COVID lift in 2022.

A key contributor to demand solidity last year was the limited scale of
thrifting and / or substitution. Firstly, many established areas are already
operating with the lowest silver use possible or have already switched. One
example of the latter is the move within HVAC (heating, ventilation and air-
conditioning) to aluminum-based systems that do not use brazing alloys. In
the next layer up where a shift away from silver might be technically possible,
losses were slight as sources feel that silver prices over $25 if not into the
high $20s are needed to motivate change. Newer uses are more vulnerable

Brazing Alloys & Solder Demand

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y
China 25.0 25.5 24.1 24.5 24.8 25.1 22.5 22.1 19.5 20.4 5%
United States 6.0 5.7 5.9 6.2 6.4 6.5 6.0 6.5 6.8 6.9 2%
Germany 4.6 4.4 4.3 4.2 4.2 4.1 4.3 4.7 5.0 5.1 1%
India 2.3 2.1 2.2 2.2 2.3 2.2 1.7 2.7 3.0 3.1 2%
South Korea 2.7 2.6 2.3 2.4 2.4 2.3 2.1 2.2 2.3 2.4 5%
Japan 1.9 1.8 1.8 2.0 2.1 2.1 1.9 2.1 2.2 2.2 2%
Others 10.9 9.0 8.7 9.3 9.8 10.1 8.9 10.0 10.4 10.1 -3%
Global Total 53.4 51.1 49.1 50.9 52.0 52.4 47.5 50.5 49.2 50.2 2%

Source: Metals Focus

49
Chapter 7: Industrial & Photography World Silver Survey 2024

Industrial Silver Fabrication versus but restrained prices and a focus on more critical areas (such as battery
design in BEVs) mean this was more a potential than an actual issue. Lastly,
Global GDP
research into new generation powders (such as silver-copper) is ongoing but
Index 2019=100 end-use remains slight due to poor resilience in real world conditions.
130
With a recession avoided and the above structural forces intact, we forecast
120
modest ongoing gains for most segments within North American industrial
110 offtake this year. However, growth picks up to 3%, chiefly as a result of a
swing to gains for EO fabrication.
100

90 South Asia
After two consecutive years of gains, industrial demand in India fell 3% last
80
year to 41.1Moz (1,288t). However, this was from a high base as 2022 saw
70 offtake jump 24%. The decline last year therefore mainly reflected a return
2010 2013 2016 2019 2022 to normality. Importantly, the drop was mainly within the other industrial
Global GDP category, as sectors such as electronics and brazing alloys grew.
Industrial Fabrication
Electrical & electronics demand continued to achieve new records, rising 6%
Source: IMF, Metals Focus
to 18.2Moz (566t) last year. Growth in electrical contacts was underpinned
by the continued strength in India’s real estate market since the country
emerged from the pandemic. Strong growth at the luxury end of real estate
also boosted demand for premium products, which in turn had a positive
bearing on typical silver loadings. On top of the benefits from robust
economic growth, electronics & electrical’s gains were export-driven, which
in turn were led by the ongoing capacity shift from China as companies
try to diversify supply chains. For instance, India’s cell phone production
is estimated to have touched $50bn in the 2024 financial year (April 2023
- March 2024) of which $15bn was exported, making it the second largest
manufacturer globally. In the domestic market, the high levels of investment
Baltic Dry Index* in infrastructure including roads, railways, power distribution also helped. The
Index switchgear industry continued to see strong growth, with the medium and
6,000
high voltage switchgear segment outperforming the low voltage market.
5,000
Even as growth in the brazing alloys & solders segment was marginal, 2023
4,000
saw another record high for this area, touching 3.1Moz (96t). Much like the
3,000 electrical & electronics industry, this area benefited from rising exports as
companies looked to reduce their dependence on China. Moreover, exports
2,000
of brazing alloys continued to enjoy support from growth in oil drilling.
1,000
Gains in the aforementioned sectors were offset by a 10% drop in the other
0
industrial segment, with demand here falling 10% y/y to 20.1Moz (627t). With
2016 2018 2020 2022 2024
the local silver price generally higher, thrifting in some of the segments
like zari (silver thread) and varakh (silver foil on sweets) continued. More
* The Baltic Dry Index is a shipping and trade index created importantly, these two areas are likely to see a structural decline with varakh
by the London-based Baltic Exchange. It is reported as a use suffering due to stricter food regulations and rising awareness among
proxy for the cost of transporting raw materials by sea.
consumers that the widely used silver foil may be of spurious quality due the
Source: Bloomberg

50
 World Silver Survey 2024 Chapter 7: Industrial & Photography

Artificial Intelligence: Its Direct and Indirect

Potential Benefits For Silver
Artificial Intelligence (AI) already colors many aspects of our lives roughly equivalent to Japan’s electricity consumption. Existing
and is set to proliferate yet further. How this affects silver demand, power grids will thus need to expand and upgrade to ensure
however, is not obvious. Much of the immediate uplift is likely to sufficient capacity. As a result, silver demand will benefit from
boost platinum and gold, which are essential in manufacturing the resultant lift in components used in power distribution and
AI hardware, such as graphics processing units (GPUs), tensor transmission systems, such as electrical contacts in switches,
processing units (TPUs) and neural processing units (NPUs). Look transformers, relays and capacitors. Growth in energy offtake will
beyond this, however, and it becomes clear that silver will be an also propel upwards momentum for the silver-reliant solar industry.
indispensable material for the rise of AI. Demand will come not only
from the growth in end-uses with AI capabilities, but also from the The rapidly evolving computing capabilities brought about by
increase in facilities required to run AI programs. Another potential AI may also create opportunities for silver. Conventional chip
source of offtake is from developments in biotechnology, where processing capacity doubles roughly every 18 months (known as
the use of silver nanowires in neuromorphic engineering may come Moore’s Law), but this cycle has been significantly shortened by
to surpass current hardware technology. the emergence of AI, which is doubling around every 3.5 months.
This means that GPUs, TPUs and NPUs (the common types of
There are several end-uses that will see a marked increase in the hardware that currently drive AI) are rapidly testing the limits of their
use of AI. The transport sector, for example, will see growth in capabilities. Neuromorphic engineering, however, takes a different
sensors and cameras linked to vehicles’ improving self-driving approach, seeking to mimic biological nervous systems in creating
capabilities. These will all require silver in various forms, including computing hardware. It is an analog approach, rather than digital.
in semiconductors, harnesses, controls, fuses, switches, electronic It is in this field that the use of silver nanowires may triumph as the
control units, infrared radars, laser radar (LIDAR), motion sensors technology to achieve superior processing power.
and displays. Thrifting and substitution are less likely to have an
impact in these uses than in consumer electronics, as concerns Recent research showed that silver nanowires randomly self-
over safety and reliability outweigh cost considerations. assembled to form a network of crossing strands. These networks
responded to a continuous stream of data by learning and adapting
Healthcare is another new end-use of silver in AI. Wearable in real time, much like the biological synapses in a human brain.
devices, such as electronic skin patches, are likely to become Compared to batch-based learning in conventional machine
a vital healthcare tool. Not only can AI algorithms be used to learning, silver nanowire networks processed information much
encourage healthy behavior by providing reminders, incentives and faster, at the speed of light rather than electricity. Furthermore,
feedback, but they can also predict health outcomes by measuring they consume far less power than GPUs and other chips, as silver
an individual’s activity level, sleep patterns, glucose levels, is highly conductive and operates at low voltages. Their small size
temperature and heart rate, enabling healthcare providers and also means that they could be integrated into wearables and other
individuals to take proactive measures before a problem becomes compact devices, such as smartphones and watches.
intractable. Silver nanoparticles are used in such patches for both
their excellent deformability and high conductivity. There are still, however, barriers to the widespread implementation
of silver nanowires as an alternative to today’s computer hardware.
In addition to the end-uses that will require more silver, the huge They are still at a pre-commercialization stage of development and
increase in energy demand from AI devices will also result in a there are difficulties in implementing a new technology into existing
boost for the white metal. Compared to traditional data centers, hardware infrastructure. The advantages conferred, however,
AI-hosting facilities require immense amounts of power when mean that they may well become the technology of choice in future.
executing algorithms and consume additional energy to keep Overall, therefore, the breakthrough of AI is a transformative
cool. The International Energy Agency (IEA) recently forecast that milestone in machine learning and silver demand is poised to
data centers’ total electricity consumption could double by 2026, benefit, directly or indirectly, from its growing presence.

51
Chapter 7: Industrial & Photography World Silver Survey 2024

Power Generation - A Key Component of

Electrical/Electronics Silver Demand
In the electrical/electronics industry, much is written about the two switch gear industries. Our information suggests that close to
largest areas of silver demand, photovoltaics and the automotive 3,000t (over 90Moz) of silver has been consumed annually in
industry, and with good reason. However, it is important not to lose these applications in recent years, with modest but steady annual
sight of other key end uses, one of which is in power generation growth being the norm.
and process controls, with the silver ultimately being consumed
in breakers, contactors and fuses (contactors are essentially In 2023 however, the sector saw mixed performances as strength
switches for larger equipment). in a number of key markets was undermined by weakness in China.
In the latter, there was some stock build-up during 2022 (which
Pure silver contacts are limited to use in low-current applications boosted silver demand that year) and, in the face of the growing
because they are softer and prone to material transfer at high property market crisis, the supply chain wound down inventories,
currents. As a result, alloys, or composite contacts containing putting pressure on fabrication. In contrast, power generation
silver and other metals. As the melting points of different elements silver demand elsewhere was robust, especially in the likes of India
can vary greatly, powder metallurgy is the preferred option in the where there is a growing focus on infrastructure investment.
manufacturing process. The powder, typically a blend of silver
and other metal powders, is “sintered”, or compressed and heated From a silver manufacturing standpoint, there are similarities
but not melted, into a solid mass. Powders can be sintered into with photovoltaics. Historically, China was the largest fabricator
finished or semi-finished shapes or into rods extruded into other of power distribution components, but an important share
shapes, with possible further processing. of the semi-finished silver was imported. However, Chinese
manufacturers now assemble much of what was once imported,
Over the long-term, this represents a growth area for industrial to the extent that the country is becoming a net exporter of these
silver demand, underpinned by the infrastructure and electrical products.

unorganized nature of the industry. Plating demand also fell after two strong
Industrial Demand by Region years of growth as demand for gifting and decorative articles normalized.
Moz Offtake was flat in the pharma/chemical industry, while demand from the
700 glass sector improved on the back of a robust real estate market.

600
We expect total industrial demand to rise by 4% this year as broader
500
economic growth continues. With incentives announced for semiconductor
400 manufacturing and the first semiconductor fabrication starting this year,
300 demand from electronics is expected to grow further. That said, the full
benefit of this might not be visible in 2024 and will only emerge further out.
200

100
East Asia
0 East Asian industrial silver demand rose by 25% to 389.5Moz (12,113t) in
2014 2016 2018 2020 2022
2023. The performance of each market segment varied greatly, resulting in
Europe North America a noticeable gap between major industrial producing countries. The main
South Asia China area of growth was the green economy, including booming PV installations,
Other East Asia Others broader investment in power grids and rapid vehicle electrification. This
Source: Metals Focus countered weakness in consumer electronics and China’s housing market.
Despite the latter, regional growth was dominated by China (chiefly due to

52
 World Silver Survey 2024 Chapter 7: Industrial & Photography

PV Silver Demand & Cell soaring PV demand) and, in fact, regional demand excluding China dipped by
1% last year.
Loadings*
Moz Index (2014=100)
Chinese industrial demand rose by a remarkable 44% to 261.2Moz (8,124t)
200 120
in 2023. The scale of that jump in part just reflects a low base as 2022 was
175
100 hit by strict lockdowns. That said, there was still strong growth for green
150
applications, with PV installations globally growing much faster than
80
125
expected. Chinese demand was also boosted by localization as protection
100 60
against trade disputes. In contrast and counter to initial expectations, offtake
75 was hit by weakness in domestic real estate, which also led to low consumer
40
50 confidence and so dragged down both the electrical and electronics sectors.
20
25
0 0 China’s rapid expansion of PV production capacity means its total capacity is
2014 2016 2018 2020 2022
more than twice demand and, as the country accounts for over 90% of global
Fabrication Silver Loading
panel shipments, it was little surprise that 2023 saw a sharp fall in module
prices. This prompted an acceleration in the deployment of solar power.
* denotes silver loadings per photovoltaic cell;
In 2023, China’s newly added installations for example hit an astonishing
Source: BNEF, Metals Focus
record of 216GW. This was up over 140% y/y, which also lifted global capacity
additions above 400GW. Moreover, the industry saw a migration from P-type
cells (PERC) to N-type cells (TOPCon and HJT) with higher silver loadings.
Although the industry actively improved the manufacturing process for
thrifting and substitution, the substantial increase in installations and the
rising share of N-type cells still meant a notable jump in silver demand.

In addition, technological breakthroughs have helped raise the market share

of local raw material supplies. Currently, the powders for P-type cell paste
are almost entirely made locally and producers are now capable of replacing
imported powders for high-end N-type cell pastes. This has lifted the powder
Consumer Electronics localization ratio in this segment to more than 70%. In 2024, global capacity
additions are forecast in the range of 550-600GW, and so the prospects for
Million Units MSI PV remain bright, even if the growth rate slows.
2,000 15,000
Offtake for consumer electronics remained sluggish, partly as high inflation
14,000
1,500 squeezed consumer budgets. Enterprise spending also slowed and the entire
supply chain saw destocking last year. In terms of products, notebook/PC
13,000
1,000 shipments suffered double-digit declines for the second consecutive year,
12,000 and smartphone deliveries fell to their lowest in a decade. In contrast, there
500 was growth in electronics for automotive applications. The electrical sector
11,000
benefited from the ramping-up investment in power grids and 5G networks,
0 10,000 but weakness in the real estate market continued to weigh heavily on high
2017 2019 2021 2023 and low voltage apparatus sales. This year, the consumer electronics market
Global Smartphone Shipment has shown signs of stabilization and should then recover, as inventory is
Global PC Shipment
no longer a problem and as emerging AI-related applications flood into the
Global Semicon Silicon Shipment
market. Given the promising outlook for PV and the solid gains from power
grids and 5G/6G networks, total demand in the electrical and electronics
Source: Canalys, SEMI, Metals Focus segment is expected to enjoy double-digit growth in 2024.

53
Chapter 7: Industrial & Photography World Silver Survey 2024

Understanding Other Industrial Demand

Metals Focus’ analysis of silver industrial demand is captured in The use of silver nitrate in the mirror industry is also multi-faceted
three areas: electrical/electronics, solders/brazing alloys and and includes a small, but growing, demand for flat and parabolic
other industrial demand, with a focus typically on the largest end- photovoltaics mirrors (which tend to be double coated with silver
uses. For other industrial demand, ethylene oxide (EO) dominates, for durability). Decorative plating can also be substantial in some
but it is worth looking at other areas, even though most will countries, with photoframes and cutlery being two examples of
consume modest quantities of silver. It is also worth stressing items consuming silver here.
that what follows covers some key areas of demand and is by no
means exhaustive, given how broad Other Industrial demand is. Silver’s usage in the Other Industrial demand in India is quite
unique. Aside from plating, it is used to manufacture zari and
The use of silver oxide goes beyond EO and into the battery varakh. Zari is a fine gold or silver thread embroidered onto fabrics
market, which extends from consumer products to the defense such as silk or cotton, especially saris to create intricate patterns
industry, including batteries used in a range of propulsion and and designs. Varakh is a thin edible silver foil made by hammering
guidance systems. (It is worth noting that much of the silver pure silver into thin sheets. These foils are then used to coat
demand from the defense industry is captured in electrical/ sweets, betel nuts or cardamom seeds.
electronics.)
The use of silver in medical devices represents another growth
Elsewhere, the nuclear industry uses silver for control rods, area. Silver nitrate will be used in catheters and heart batteries.
which can contain around 80% silver. These rods are embedded Silver’s anti-bacterial properties is increasingly being used in
within reactors and tend to have a 10-15 year shelf life. However, serious wound dressing where anti-bacterial drugs may not work
the level of contamination means that when these rods are quickly enough. The anti-microbial theme also extends to wearable
changed the silver cannot be recovered. materials, where chemically plated clothing is finding favor with
some athletic and camping brands.

Brazing alloy demand rose 5% to 20.4Moz (635t) in 2023. Although offtake

in HVAC was hit by a weak housing market, overall demand was resilient

Other Industrial Demand thanks to investment in rail networks, growth in the automotive industry,
the shipbuilding industry’s record number of vessel completions and gains
Moz in aerospace. In 2024, this demand segment is expected to grow modestly,
170
driven by auto-related applications and shipbuilding end-uses, as well as
160 rising strategic fixed asset investments to boost the domestic economy.

150
Fierce competition from Chinese fabricators continued to put pressure on
140
Japanese silver industrial demand in 2023. As a result, the country’s silver
130 industrial offtake underperformed and was virtually flat y/y at 98.0Moz
120 (3,048t). In addition to the total being lower in absolute terms than in 2020
and 2021, such anemic growth compares with an 11% increase in the global
110
total and 44% in China. This was due to the lackluster performance of
100
electrical and electronic applications, which account for the overwhelming
2014 2016 2018 2020 2022
bulk of industrial demand in the country.

In 2024, we expect Japanese demand will recover by 13%. This is based on

Source: Metals Focus
our strong solar demand growth forecast and an assumption that technology
shifts, as well as higher Chinese silver prices, will help Japan reclaim a small
part of the market share it has lost.

54
 World Silver Survey 2024 Chapter 7: Industrial & Photography

Photographic Demand & Paper South Korean industrial offtake fell by 3% last year due to lower exports of
semiconductors and consumer electronics as a result of subdued economic
Production
conditions in its major trading partners. There was however some offset from
Moz Million Square Meters
45 800 rising vehicle production and growing electrification in this area. Taiwanese
40 industrial offtake declined by 5% as weaker than expected end-product sales
35 600 and destocking activities resulted in lower factory utilization rates. Industrial
30 demand growth in these two countries is expected to resume this year, aided
25 by a modest rebound in semiconductors and consumer electronics.
400
20
15
10 200
Photographic Demand
5 Silver fabrication in photographic applications slipped by 2% to 27.0Moz
0 0 (840t) in 2023. Much was due to offtake by the medical sector continuing
2014 2016 2018 2020 2022
to drifter lower. With the industrialized world having almost entirely shifted
Photographic Demand
to digital, this decline was dominated by emerging markets, such as India,
Photographic Paper Production
where digitization continued. Chinese demand for analog x-ray films
Source: Metals Focus, Photofinishing Newsletter remained broadly steady. However, the shift by the government to centralize
procurement on drugs and medical equipment led to growing market share
for local manufacturers. In the medium term, modernization and digitization
have become key themes in the country’s health system upgrades and this
could start to weigh on the use of traditional x-ray films.

In contrast, demand for consumer and professional rolls rose by 3%, and
sales of color negative paper were up by 2%, though all remained historically
low. The increase in silver fabrication, however, was curbed by unsold
inventories being taken and repackaged for sale. The recovery was led by
western countries, mostly in Europe, as younger generations showed interest
in exploring artistic photography or old techniques. As many universities
now offer photography courses, this has generated decent demand for silver
halide printing. The recovery in post-COVID travel also gave a boost to photo
taking. In professional film and paper, demand remained broadly stable.
Offtake for non-destructive testing (NDT) x-rays also remained stable, as
radiographic testing is still the preferred method for equipment inspections.
Lastly, demand from the motion picture industry held steady (at very low
levels) as some directors continued to value the artistic merits of analog film.

Photographic Demand

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y
Europe & N America 29.9 27.2 24.3 22.4 21.4 20.6 20.4 20.4 19.8 19.6 -1%
East Asia 9.8 9.6 9.0 8.7 8.4 8.3 6.5 7.3 7.7 7.4 -3%
Others 1.3 1.3 1.4 1.4 1.6 1.8 - - - - n/a
Global Total 41.0 38.2 34.7 32.4 31.4 30.7 26.9 27.7 27.5 27.0 -2%

Source: Metals Focus

55
Chapter 8: Jewelry & Silverware World Silver Survey 2024

Chapter 8
Jewelry & Silverware
– Jewelry fabrication in 2023 stood at Jewelry
203.1Moz (6,318t), down a steep 13% from
2022’s record high. Introduction
Global jewelry fabrication in 2023 fell by 13% to 203.1Moz (6,318t). Though
– India’s 25% slump due to price damage, the decline was steep, that largely just reflects the record high in 2022, with
import competition and limited stock volumes last year still up on 2019 despite the 44% jump in the annual average
build was mostly responsible, as demand silver price since that year. The vast bulk of 2023’s drop was due to India
outside of India only fell by 3%. where high local prices, limited stock replenishment and competition from
imports cut fabrication by 25% (27.9Moz / 868t). However, that fall was from
– Jewelry demand in 2024 is forecast up 4%, a record high and offtake was still the second highest on record thanks to a
with most countries seeing slight gains. booming economy. Outside of India, offtake only fell a modest 3% in 2023.
Much of that was due to weak consumption in North America and Europe plus
– Silverware demand fell by a steep 25% destocking by retailers, both of which also hit suppliers in East Asia. Chinese
to 55.2Moz (1,717t) last year from 2022’s demand also eased due to poor consumer sentiment and competition from
record high (again due mainly to India) but gold jewelry. Global demand in 2024 is forecast to rise by 4%, chiefly due to
is forecast to grow by 8% this year. sales gains and restocking in India, although any periods of unexpected price
strength and market share losses to Thailand could easily curb its growth.
Consumption growth and restocking is also expected in the West.

Europe
European silver jewelry fabrication fell by 2% in 2023 to 31.3Moz (974t).
Results were quite varied at the country level however with some (such as
France) enjoying gains, while others (most importantly Italy) saw losses. The
decline of 3% for the main fabricator, Italy, was chiefly due to lower exports.
This may seem to contradict the 3% rise in export value but, once inflation’s
impact on costs and the rise in the silver price are taken into account, it is
easy to see how the fine weight could fall. Indeed, sources typically report a
gap of at least 5% points between weight and value. Our estimation of lower
exports of Italian-fabricated jewelry might also appear to contradict customs
data showing a rise of 8% in exports’ gross weight. Any discrepancy from
Global Jewelry Fabrication the conversion of gross into fine weights is relatively small here. Instead, the
Forecast main problem is the re-export from Italy of silver jewelry fabricated in other
countries plus likely distortions from the trade in semi-manufactured items.
Million ounces 2023 2024F Y/Y
Europe 31.3 32.0 2%
Industry sources certainly report weakness in exports to the US, Italy’s
North America 17.7 18.4 4%
largest market and US customs statistics imply a drop of 2% in fine weight for
Middle East 11.0 11.5 5%
imports from Italy. Our sources view that as too optimistic due to the impact
South Asia 87.0 91.4 5%
of destocking by retailers and the damage to US consumption from such
East Asia 48.3 49.6 3% factors as cost of living concerns. For similar reasons, Italian exports to their
CIS 3.7 4.1 10% second largest destination, the rest of the EU, also fell, and by at least 7% in
Others 4.0 4.2 6% fine weight. One interesting change was the slump in shipments to Russia
Global Total 203.1 211.3 4% from 0.4Moz (13t) in 2019 to just 4koz (121kg) last year, while exports to
Turkey jumped from under 0.4Moz (12t) to over 0.6Moz (20t) in those years.
Source: Metals Focus

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 World Silver Survey 2024 Chapter 8: Jewelry & Silverware

Jewelry Fabrication

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Europe
Italy 19.5 20.0 18.8 19.5 19.3 19.9 16.2 21.1 21.8 21.1 -3%
Germany 3.4 3.5 3.4 3.4 3.5 3.5 3.1 3.6 3.4 3.3 -5%
France 1.9 2.0 2.0 1.9 1.9 1.8 1.6 1.7 1.9 2.0 7%
Others 4.7 4.7 4.6 4.7 4.6 4.7 3.8 4.6 4.9 5.0 2%
Sub-total 29.6 30.2 28.7 29.5 29.3 29.9 24.7 31.0 32.0 31.3 -2%

North America
United States 13.0 13.6 12.9 13.2 13.0 12.9 11.5 13.2 12.8 11.2 -13%
Canada 3.9 3.5 3.6 3.4 3.2 3.2 2.7 3.7 3.7 4.1 11%
Mexico 5.4 5.7 5.8 4.9 5.0 4.5 3.1 2.2 2.3 2.5 6%
Sub-total 22.3 22.9 22.3 21.5 21.2 20.6 17.3 19.1 18.8 17.7 -6%

Middle East
Turkey 6.3 6.7 4.9 4.9 5.9 6.0 4.4 6.9 7.2 6.9 -5%
Others 2.6 3.1 3.0 2.8 3.6 3.2 2.8 3.3 3.9 4.1 6%
Sub-total 8.9 9.8 7.8 7.7 9.5 9.2 7.2 10.2 11.2 11.0 -1%

South Asia
India 45.1 56.6 53.9 64.2 72.5 69.0 40.5 58.7 111.6 83.7 -25%
Others 1.7 2.1 2.0 2.4 2.7 2.5 1.5 2.1 3.4 3.3 -4%
Sub-total 46.8 58.7 55.9 66.5 75.2 71.6 42.0 60.8 115.1 87.0 -24%

East Asia
Thailand 24.7 28.2 26.6 26.9 25.2 28.5 23.9 23.4 23.7 22.2 -6%
China 41.1 33.8 28.7 25.5 24.3 22.8 18.9 20.8 17.1 16.2 -5%
Indonesia 6.1 4.9 5.2 5.1 5.3 5.6 4.8 3.7 4.1 4.7 13%
South Korea 2.9 3.1 2.7 2.7 2.5 2.5 2.0 2.3 2.2 2.1 -7%
Japan 1.3 1.4 1.4 1.5 1.6 1.7 1.5 1.4 1.3 1.3 0%
Others 1.6 1.5 1.5 1.6 1.7 1.8 1.5 1.6 1.8 1.9 5%
Sub-total 77.8 72.9 66.2 63.3 60.5 62.8 52.7 53.2 50.2 48.3 -4%

Other Regions
CIS 4.0 4.5 4.3 4.1 3.7 3.5 3.7 3.9 3.4 3.7 10%
C&S America 2.2 2.0 2.0 1.9 2.0 2.1 1.8 2.1 2.2 2.3 5%
Africa 1.2 1.1 1.0 1.0 1.1 1.1 0.9 1.0 1.0 1.0 -2%
Oceania 0.6 0.6 0.6 0.7 0.7 0.7 0.5 0.6 0.7 0.7 -3%
Sub-total 8.1 8.1 8.1 7.8 7.5 7.5 7.0 7.6 7.3 7.7 5%

Global Total 193.5 202.5 189.1 196.2 203.2 201.6 150.9 182.0 234.5 203.1 -13%

Source: Metals Focus

57
Chapter 8: Jewelry & Silverware World Silver Survey 2024

Global Jewelry Fabrication European demand in 2024 is expected to rise by 2%, chiefly due to growth in
Italian exports. Bullion suppliers to fabricators noted good results of late and
Moz US$/oz
the mood at January’s Vicenza jewelry fair was positive. Demand should also
250 35
benefit from restocking by retailers and higher regional consumption.
200 30
European jewelry consumption was sluggish in 2023. Many countries in
150 25 the first half saw a continuation of 2022’s post-COVID recovery but sales
tended to weaken in H2.23 due to cost of living issues, depleted savings
100 20 and recession fears. The value of sales again outperformed the fine weight.
This means for example that the rise of only a few percent for jewelry sales
50 15
by value in France, basis figures from Francéclat, was probably insufficient
to lift the fine weight bought. One driver of this gap was a shift from generic
0 10
2014 2016 2018 2020 2022 to higher margin branded silver pieces, a clear trend on view at Germany’s
China India Inhorgenta jewelry fair. Destocking by retailers was also felt to have been a
Thailand Italy
feature last year. UK silver hallmarking for instance was down a hefty 22%,
Others Silver Price
but we would be surprised if sales to the consumer were that weak. Provided
Europe manages to escape a recession, we expect the region’s consumption
Source: Metals Focus, Bloomberg to grow slightly this year, with suppliers also benefiting from restocking.

North America
US silver jewelry fabrication fell by a notable 13% last year, chiefly due to the
drop in local consumption. This was magnified through heavy destocking by
domestic retailers and a fall in exports, cutting demand to below 2019 levels.

We estimate consumption fell by a more modest 8% and so held just above

2019 in fine weight terms. This drop was partly due to a repeat of some of
the factors driving 2022’s decline, chiefly a shift in expenditure from goods
to services (in particular a full year of normalized travel). However, the drop
in 2023 was steeper, a change which we see as being due to cost of living
pressures and concerns that a recession was imminent. This is evident in that
Italian Jewelry Fabrication sales slowed markedly after the summer as these fears and pressures built.
That said, a surprisingly strong holiday period meant fourth quarter sales
Moz €/Kg were above initial expectations. Trade sources feel this was a result of these
22 800 fears easing and doing so fortuitously at a time when gifting is required.
20
700
Silver also performed less well than gold jewelry, whose consumption we
18
600 estimate as down 5% in 2023. This gap highlights how little migration there
16 was from silver to gold by those consumers feeling income pressures. This
500 did not surprise as contacts see the two metals as appealing to two different
14
consumer groups, motivated by different factors. Silver is typically seen as a
400 lifestyle / fashion choice dominated by self-purchase, while gold can benefit
12
from quasi-investment beliefs and from the popularity of demonstrative
10 300
2014 2016 2018 2020 2022 pieces, often buying into heavy, rapper styles. Silver’s fine weight was also
Jewelry Fabrication under pressure from average margins moving higher as branded silver
Silver Price outperformed generic and as pieces incorporating stones and other non-
Source: Metals Focus, Bloomberg metal elements showed no sign of weakness. We therefore see it as perfectly

58
 World Silver Survey 2024 Chapter 8: Jewelry & Silverware

US Jewelry Imports possible for the 2% rise in (like-for-like) sales last year for leading retailer,

Moz Pandora, to sit along side our estimate of an 8% drop in fine weight terms.
35

30 The heavy destocking by retailers noted earlier was largely the product of
many having started the year with excess stocks and then concerns building
25
after the summer that a sharp slowdown in sales was likely. Rising interest
20 rates also increased finance costs, while some independent retailers were
15 finally felt to have improved their stock management practices. Silver at least
avoided the stock disruption that hit gold through the shift from mined to lab’
10
grown diamonds as a result of prices of larger stones slumping - the price of
5
the tiny diamonds that silver often carries was little affected.
0
2020 2021 2022 2023 Lower consumption and destocking hit imports too, which we estimate to
Thailand India Italy have fallen by over 10%. Thailand bore the brunt of this, with the other three
China Others main origins (Italy, China and India) only seeing single-digit losses. Customs
data states a 1% fall in US silver jewelry exports for gross weight and a 2% fall
for value, but our analysis suggests a fall of over 5% in fine weight terms.
Source: Metals Focus

We forecast a modest rise in US consumption this year as discretionary

spending rises, even with a potentially dramatic political backdrop.
Restocking (especially after the bumper Christmas) should then allow for a
slightly larger rise for local fabrication and jewelry imports.

Contrasting Styles of Jewelry in the West and India

Clockwise from bottom left: 925 silver bracelet

with cubic zirconia by UNOAERRE; pendants,
charms and earrings with enamel and turquoise
by James Avery Artisan Jewelry; pendant by
Silver Emporium India and traditional payal
(ankle bracelet).

59
Chapter 8: Jewelry & Silverware World Silver Survey 2024

Indian Bullion Imports Middle East

Jewelry demand in the Middle East fell by 1% in 2023 to 11.0Moz (342t).
Rps/kg
Moz
Turkey, the largest fabricator, saw a decline of 5% which was driven by a 2%
(000s)
350 80 fall in exports after a record 2022 and by higher jewelry imports. Local sales,
however, rose by 9% as consumers were not deterred by exceptionally high
300 70
inflation and purchased ahead to preserve some buying power. For 2024, we
250 forecast a 5% rise in regional offtake as export growth is forecast to pick up.
60
200

150
50
South Asia
40 Fabrication in the world’s largest silver jewelry market, India, fell by 25%
100
to 83.8Moz (2,604t) last year. This comes against a background of record
50 30 high fabrication of 111.6Moz (3,472t) the previous year, primarily driven

0 20 by restocking and pent-up demand from COVID-affected 2020 and 2021.

2014 2016 2018 2020 2022 Notwithstanding the year-on-year drop in 2023, it was still the second-
Bullion Imports Silver Price highest total on record and nearly 40% above the average of the last ten

Source: Metals Focus, S&P Global, Bloomberg

years. This in turn reflects a growing economy, rising disposable incomes and
improving purities due to the growing popularity of sterling silver jewelry.

Focusing on 2023, several factors contributed to the decline, including: lower

consumer demand due to high prices; a lack of stock replenishment by the
trade, and increased jewelry imports from Thailand. Taking each in turn,
domestic silver prices rose by 16% in 2023 and achieved a new high, in part
due to the hike in the bullion import duty, which was increased from 10.75%
to 15%. This in turn weighed on consumer purchases. The Indian consumer is
highly price-sensitive, especially in rural communities where payals (anklets)
are popular and in fact account for around half of overall jewelry demand.
Another factor that undermined fabrication activity was destocking activity

Indian Jewelry Fabrication by retailers. In 2022 , much of the trade took the opportunity of lower prices
to build inventory in anticipation of another strong year of demand. However,
Moz Moz
lower consumer buying, and price gains meant that many retailers chose to
120 14 instead run down inventory in 2023 and wait for lower prices to restock.

100
12
Another interesting trend that impacted fabrication was the rise in jewelry
80 imports from Thailand. India signed a Free Trade Agreement (FTA) with
10
ASEAN countries in 2003, under which, India can import silver jewelry from
60
Thailand at a 1% duty compared to paying 15% on silver bullion and then
8
40 fabricating jewelry domestically. This duty advantage meant that India
imported more than 180t of silver jewelry. Last year, these jewelry imports
6
20 were dominated by a few companies but our recent visit to Thailand revealed
that there have been increased inquiries from Indian companies to import
0 4
2014 2016 2018 2020 2022 jewelry. Thus, the volume of imports is likely to increase further this year,
Fabrication, LHS negatively impacting fabrication.
Gross Export Weight, RHS
Higher prices have also impacted the weight of jewelry sold in the market.
Source: Metals Focus, S&P Global The average weight of payals has come down by at least 10-20%. Some
of the positive trends of the last few years, however, continued. On top of

60
 World Silver Survey 2024 Chapter 8: Jewelry & Silverware

Chinese Jewelry Fabrication rising purities, tech based jewelry startups selling silver jewelry online have
continued to perform well. These typically sell daily wear fashion jewelry

Moz Yuan/g targeting the young urban consumer. Although not rising at the same pace
45 6 as daily wear fashion jewelry, demand for gold-plated silver jewelry also
40 remained strong, a trend which we expect to continue given the surge in gold
35 5
prices and the improved design offerings in this segment.
30
25 For this year, we expect fabrication to recover by a modest 5% to 87.9Moz
4
20 (2,734t), the second-highest total. After a cautious 2023, restocking by
15 retailers is also likely to resume. However, Indian demand remains vulnerable
3
10 to any substantial price rally were that to occur, and a second risk is the
5 potential for a significant jump in imports from Thailand.
0 2
2014 2016 2018 2020 2022
East Asia
Jewelry Fabrication Silver Price Chinese silver jewelry fabrication did not see a post-COVID recovery last

Source: Metals Focus, Bloomberg year, but instead fell by another 5% in 2023 to 16.2Moz (504t). That said,
early 2023 saw the market rebound due to pent-up demand from Q4.22,
higher footfall in shopping malls after the infection peak and improving
consumer sentiment. However, the gains were limited as consumer attention
increasingly centered on gold during the Chinese New Year holiday. After
that, demand lost momentum due to a deteriorating economic outlook and
poor consumer sentiment. Interestingly, sales lacked support in tourist areas,
although visitors’ footfall strongly rebounded. This reflected consumers’
cautious spending on non-essential items. The growing popularity of yellow
metal jewelry also continued to weigh heavily on silver jewelry demand, while
silver jewelry exports recorded a notable decline.

Thai Jewelry Fabrication Like previous years, the divergence in performance between retail shops and

Moz DKK Bn online channels continued in 2023, driven by the latter’s price advantages
and the growing popularity of livestream sales. Retail stores suffered
30 30
from fierce price competition, leading to many being closed. In addition,
25 an increasing number of local branded silver jewelry stores on the main

20 shopping streets started to sell some gold products to help curb shrinking
20 profit margins associated with silver jewelry. Regarding product assortments,
bangles for babies and children, stylish layered collections, and designs with
15
10 pearls and zircon outperformed other areas.

10
China’s National Bureau of Statistics noted that gold and silver jewelry retail
0 5 sales over the 2024 Chinese New Year holiday rose by 23.8% y/y in value
2014 2016 2018 2020 2022 terms. However, based on our field research, silver jewelry demand remained
Fabrication Pandora Revenue flat year-on-year during the period and most of the gains were attributed to
gold jewelry. It is important to remember that the 2023 Chinese New Year
period had already seen strong gold jewelry sales. For 2024, we now expect
another 3% decline in silver jewelry demand due to consumers’ ongoing
Source: Metals Focus, Pandora A/S
focus on gold, the supply chain’s lower investment in marketing and product
development, and a slowdown in the economy.

61
Chapter 8: Jewelry & Silverware World Silver Survey 2024

Global Silverware Fabrication Indonesian jewelry fabrication rose for the second consecutive year, by 13%
to 4.7Moz (145t). Despite this, it remains below pre-pandemic levels. In 2023,
Forecast
fabrication benefited from improvements in domestic and export markets.
Million ounces 2023 2024F Y/Y The latter reflected firmer demand from the US and India.
Europe 3.4 3.3 -2%
North America 1.7 1.8 2% After rising for two years, jewelry fabrication in Thailand fell by 6% to
Middle East 3.1 3.2 4% 22.2Moz (691t), its lowest level since 2012. Competition from Chinese and
South Asia 42.1 45.8 9% Indian exports in certain jewelry markets and a shift towards lightweight
East Asia 3.6 3.6 0% jewelry have continued to impact fabrication.
CIS 0.8 0.7 -10%
Others 0.5 0.5 6% The drop in offtake also resulted from a new driver, weak export demand
in Western markets, including the US, Germany, and the UK. On top of the
Global Total 55.2 58.8 7%
economic slowdown in Europe, retailers in the US were cautious in building
Source: Metals Focus
fresh stocks and preferred to run down existing inventory. While these
traditional export markets have been weak, Thai exports to India more than
doubled, with gross exports surpassing 5.8Moz (180t) in 2023 from about
1.3Moz (40t) in 2019, a reflection of the ASEAN Free Trade Agreement. By
comparison, domestic demand has been fairly robust driven by household
incomes returning to more normal levels as tourism and the economy picks
up. This year, we forecast a 5% increase in fabrication driven by further gains
in India and improving Western demand.

Silverware
Global silverware fabrication fell by a notable 25% in 2023 to 55.2Moz (1,717t).
The extent of the drop was largely the product of 2022 having achieved a
record high, with last year’s volumes still 5% higher than the 2010-19 average.
The vast bulk of last year’s retreat was due to India and then Nepal; outside of
Global Silverware Fabrication South Asia, demand fell by just 2%. With regards to 2024, we forecast a rise
Moz US$/oz of 7% for global silverware demand, albeit to just a two-year high.
75 30
After doubling in 2022, Indian silverware fabrication fell 30% y/y to 37.5Moz
60 (1,167t) in 2023. Apart from the normalization after an exceptional year of
25
demand, the key factor that undermined offtake last year was the record-
45
high local silver price. Even so, demand in 2023 was still 8% higher than the
20
average of the past decade. Much of this has to do with the improvement in
30
purities driven by increased penetration of sterling silver.
15
15
Focusing on 2023, gifting demand suffered due to elevated rupee
prices. High prices also led to a reduction in overall product weights, with
0 10
2014 2016 2018 2020 2022 manufacturers pointing to a 5-10% drop to help offset the impact of the price
China Italy rise. Importantly, our research suggests that some consumers also shifted to
Others India
items with less than 80% silver, especially in smaller towns and rural locations
Silver Price
which are far more price sensitive. By contrast, the penetration of sterling
silver gathered pace in urban centers. Furthermore, high-end silverware
Source: Metals Focus, Bloomberg
furniture and decorative pieces are gaining prominence among the upper

62
 World Silver Survey 2024 Chapter 8: Jewelry & Silverware

Examples of Indian Silverware middle class. As a result, several standalone silverware shops have opened
in the last few years. This has also helped to partially offset the reduction in
demand from rural India.

This year, we forecast demand to grow by 8% to 40.5Moz (1,260t), driven

by the ongoing strength in the economy and rising disposable incomes.
Moreover, any periods of price weakness should benefit demand. The early
months of 2024 have already seen this play out, with the price drop during
January leading to a surge in bullion imports.

After more than doubling in 2022, Nepal’s fabrication fell by 30% in 2023 to
4.3Moz (135t). Aside from reflecting a return to more normal levels after an
exceptionally strong 2022, the drop in 2023 was also due to high local silver
prices. We expect demand to partially recovery this year by around 13%.

Chinese demand fell by 10% in 2023 to 2.1Moz (65t) due to impaired

consumer sentiment and a weak gifting market. This was despite online
livestream sales continuing to improve. Daily-use products, including tea and
liqueur sets and tableware, outperformed others on the back of marketing
activities centered on silver’s antibacterial characteristics. For 2024, we
expect another 5% decline in demand due to the slowdown in the country’s
economy and consumers’ declining spending on non-essential items. In
the Middle East, silverware fabrication increased slightly by 2% in 2023 to
3.1Moz (96t) due to a noteworthy rise in Turkish exports of around 8% almost
solely to Israel and the US.

European demand in 2023 fell by 2% to a three-year low, chiefly as mass

market sales continued to slide. Italy, however, saw growth of 3% due to
gains for the high end brands and religious items, as reflected in a slight lift in
exports. Italian shipments to the US rose but we feel that the rise of 9% for all
Top left courtesy of Argentum Arts, bottom right courtesy of
Silver Emporium India silverware imports (as implied by US customs data) overstates the strength
of the US market and stability for US demand instead seems more likely.

Silverware Fabrication

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

India 30.6 37.0 34.1 39.7 46.4 41.2 17.4 24.4 53.6 37.5 -30%
Nepal 3.6 4.3 4.0 4.6 5.4 4.8 2.0 2.8 6.2 4.4 -30%
China 6.0 3.9 3.1 3.4 3.5 3.3 2.5 2.7 2.3 2.1 -10%
Italy 2.8 2.7 2.5 2.3 2.2 2.0 1.3 1.7 1.7 1.8 3%
United States 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.4 1.4 -0.1%
Others 9.2 9.0 8.5 8.2 8.4 8.7 6.7 7.8 8.3 8.1 -2%
Global Total 53.5 58.3 53.5 59.4 67.1 61.3 31.2 40.7 73.5 55.2 -25%

Source: Metals Focus

63
World Silver Survey 2024 Chapter 9: Appendices

Appendices

65 Silver Supply and Demand (Tons)

66 Mine Production (Tons)
68 Recycling (Tons)
69 Industrial Demand (Tons)
69 Electrical & Electronics Demand (Tons)
70 Brazing Alloys & Solder Demand (Tons)
70 Photographic Demand (Tons)
70 Physical Investment (Tons)
70 Coins & Medals Fabrication (Tons)
71 Jewelry Demand (Tons)
71 Silverware Demand (Tons)
72 Top 30 Silver Producing Mines
73  Top 30 Silver Producing Mines Map
74 Top 20 Silver Producing Companies (Tons)
74  Top 20 Silver Producing Countries (Tons)
74 Mine Production Forecast by Region
75 Primary Silver Production Costs (by-product)
76 Mine Production by Region & Primary Metal
77 Nominal Silver Prices
78 Real Silver Prices (Inflation Adjusted)
79 LBMA & CME Silver Prices
80 Year-End One-Month Silver Option Volatility Skew
80 CME Activity & Inventories
81 LBMA Silver Trading Volumes
81 Chinese Silver Exchanges’ Activity
82 Physically Backed Silver ETP Holdings
83 Swiss Silver Bullion Trade Flows
84 United Kingdom Silver Bullion Trade Flows
85 Hong Kong Silver Bullion Exports
85 Indian Silver Bullion Imports
86 Silver Powder Trade Flows
86 Value of United States Silver Jewelry Imports
87 Italian Silver Jewelry Exports
87 German Silver Jewelry Imports
88 Notes and Definitions

64 64
 World Silver Survey 2024 Chapter 9: Appendices

Appendix 1 - Silver Supply and Demand

Year on Year

Tons 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F 2023 2024F

Supply
Mine Production 27,894 27,987 26,861 26,456 26,039 24,366 25,786 26,025 25,830 25,613 -1% -1%
Recycling 4,572 4,531 4,578 4,626 4,609 5,111 5,403 5,504 5,556 5,563 1% 0.1%
Net Hedging Supply 67 - - - 434 264 - - - - na na
Net Official Sector Sales 33 33 33 37 32 37 48 54 51 46 -6% -9%

Total Supply 32,566 32,551 31,471 31,120 31,113 29,778 31,237 31,583 31,437 31,222 0% -1%

Demand
Industrial (total) 14,218 15,227 16,372 16,305 16,281 15,853 17,459 18,298 20,353 22,110 11% 9%
Electrical & Electronics 8,470 9,609 10,566 10,296 10,180 10,014 10,924 11,548 13,846 15,102 20% 9%
...of which photovoltaics 1,852 2,537 3,088 2,706 2,330 2,575 2,766 3,672 6,017 7,217 64% 20%
Brazing Alloys & Solders 1,589 1,527 1,582 1,617 1,629 1,479 1,570 1,529 1,561 1,612 2% 3%
Other Industrial 4,158 4,090 4,224 4,393 4,472 4,360 4,965 5,221 4,946 5,396 -5% 9%
Photography 1,188 1,080 1,009 977 956 836 862 855 840 812 -2% -3%
Jewelry 6,300 5,883 6,103 6,322 6,270 4,694 5,661 7,295 6,318 6,572 -13% 4%
Silverware 1,813 1,664 1,848 2,086 1,906 969 1,267 2,286 1,717 1,830 -25% 7%

Net Physical Investment 9,621 6,621 4,844 5,160 5,828 6,474 8,844 10,486 7,562 6,593 -28% -13%
Net Hedging Demand - 374 35 230 - - 110 557 379 - -32% na
Total Demand 33,139 30,849 30,212 31,079 31,241 28,827 34,203 39,778 37,169 37,918 -7% 2%

Market Balance -573 1,702 1,260 41 -128 951 -2,966 -8,195 -5,732 -6,695 -30% 17%
Change in ETP Holdings -532 1,676 223 -666 2,590 10,299 2,020 -3,912 -1,310 1,555 -67% na
Market Balance less ETPs -41 26 1,037 706 -2,718 -9,348 -4,986 -4,283 -4,422 -8,250 3% 87%
Silver Price (US$/oz)* 15.68 17.14 17.05 15.71 16.21 20.55 25.14 21.73 23.35 - 7% na

*London Price. Source: Metals Focus

Global Supply Global Demand

Tons (000s) Tons (000s)
35 40
30 35

25 30

20 25

15 20
15
10
10
5
5
0
2011 2013 2015 2017 2019 2021 2023 0
2011 2013 2015 2017 2019 2021 2023
Mine Production Recycling
Hedging Official Sector Industrial Photography Jewelry
Silverware Investment De-Hedging

Source: Metals Focus Source: Metals Focus

65
 Chapter 9: Appendices World Silver Survey 2024

Appendix 2 - Mine Production

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

North America
Mexico 5,767 5,975 5,421 5,815 6,049 5,840 5,605 6,097 6,630 6,290 -5%
United States 1,180 1,090 1,150 1,031 926 976 986 1,012 1,032 996 -3%
Canada 472 369 361 393 368 419 293 284 269 221 -18%
Sub-total 7,418 7,433 6,931 7,240 7,344 7,235 6,884 7,392 7,932 7,508 -5%

Central & South America

Peru 3,918 4,218 4,737 4,820 4,556 4,202 3,160 3,593 3,330 3,331 0%
Chile 1,562 1,496 1,448 1,257 1,243 1,189 1,474 1,281 1,302 1,617 24%
Bolivia 1,340 1,306 1,353 1,196 1,192 1,153 930 1,292 1,207 1,326 10%
Argentina 920 1,133 993 908 960 1,025 748 868 959 808 -16%
Brazil 35 49 77 86 71 69 69 73 76 103 36%
Panama 0 - - - - 27 50 78 87 85 -3%
Dominican Republic 136 95 122 152 159 141 129 106 89 75 -16%
Guatemala 858 863 840 337 - - - - - - na
Others 106 80 64 62 77 92 93 129 133 139 5%
Sub-total 8,875 9,241 9,635 8,818 8,258 7,898 6,652 7,420 7,184 7,483 4%

Europe
Poland 1,195 1,218 1,272 1,297 1,272 1,257 1,226 1,307 1,319 1,323 0%
Sweden 396 492 511 484 467 446 417 432 456 392 -14%
Spain 35 44 46 59 75 84 107 123 108 114 6%
Portugal 47 46 43 40 91 95 96 98 79 99 26%
Finland 2 3 3 3 2 33 50 46 46 46 -0.3%
Others 79 74 71 74 62 85 95 84 73 99 37%
Sub-total 1,755 1,876 1,946 1,957 1,969 2,000 1,990 2,090 2,081 2,074 -0.3%

Africa
Morocco 244 281 311 319 243 284 249 248 271 275 1%
Botswana 26 4 4 0 0 0 0 20 51 73 42%
Eritrea 53 98 98 79 54 50 72 75 55 66 19%
South Africa 55 58 60 68 51 62 39 41 52 59 13%
Others 102 109 69 74 75 78 78 81 86 89 4%
Sub-total 479 551 543 540 424 474 438 465 516 562 9%

Commonwealth of Independent States

Russia 1,434 1,590 1,450 1,305 1,341 1,391 1,309 1,212 1,280 1,236 -3%
Kazakhstan 562 500 542 589 615 530 541 466 479 516 8%
Uzbekistan 182 182 185 185 185 189 195 212 219 239 9%
Armenia 75 77 74 82 63 75 82 79 78 71 -9%
Tajikistan 31 35 40 47 46 45 47 48 46 37 -19%
Others 7 11 20 15 18 20 18 19 20 61 201%
Sub-total 2,290 2,395 2,311 2,223 2,268 2,249 2,192 2,037 2,122 2,161 2%

Source: Metals Focus

66
 World Silver Survey 2024 Chapter 9: Appendices

Appendix 2 - Mine Production (continued)

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Asia
China 3,701 3,705 3,774 3,620 3,439 3,468 3,407 3,511 3,478 3,399 -2%
India 261 374 436 526 658 633 671 689 694 739 6%
Indonesia 219 308 335 313 320 235 283 317 321 319 -1%
Turkey 199 205 209 152 147 99 123 170 146 91 -38%
Iran 70 67 77 79 79 82 84 85 86 89 3%
Mongolia 52 62 68 54 53 51 51 55 51 58 13%
Philippines 23 30 35 32 30 31 24 31 56 49 -13%
Laos 40 52 51 43 37 34 29 30 26 21 -18%
Myanmar 11 8 9 12 21 24 25 18 16 16 2%
Others 79 67 97 52 54 49 52 52 53 53 0%
Sub-total 4,654 4,878 5,091 4,883 4,838 4,707 4,750 4,958 4,926 4,834 -2%

Oceania
Australia 1,847 1,430 1,418 1,120 1,254 1,325 1,337 1,330 1,166 1,071 -8%
Papua New Guinea 95 72 100 66 93 146 119 91 94 134 42%
Others 20 17 13 13 9 5 2 3 4 3 -22%
Sub-total 1,962 1,520 1,531 1,199 1,356 1,476 1,459 1,424 1,264 1,208 -4%

Global Total 27,433 27,894 27,988 26,861 26,457 26,039 24,365 25,785 26,025 25,830 -1%

Source: Metals Focus

Mine Supply by Region Recycling by Source

Tons (000s) Tons (000s) US$/oz
30 8 40
7
25 35
6
20 30
5

15 4 25
3
10 20
2
5 15
1

0 0 10
2011 2013 2015 2017 2019 2021 2023 2011 2013 2015 2017 2019 2021 2023
Industrial Coin
N America C&S America Asia
Jewelry Silverware
CIS Europe Oceania
Photo Silver Price
Africa

Source: Metals Focus Source: Metals Focus, Bloomberg

67
 Chapter 9: Appendices World Silver Survey 2024

Appendix 3 - Recycling

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Europe
Germany 318 307 303 291 306 307 297 302 304 321 5%
Italy 206 182 171 163 156 158 150 149 142 143 1%
UK 182 174 168 163 159 156 148 141 135 127 -5%
France 134 118 106 101 98 97 97 104 99 98 -1%
Other 317 293 291 321 291 295 294 310 319 295 -8%
Sub-total 1,156 1,073 1,038 1,039 1,011 1,013 987 1,007 999 985 -1%

CIS
Russia 249 208 203 246 310 264 290 319 351 316 -10%
Others 55 43 45 54 59 57 63 69 75 68 -10%
Sub-total 304 251 247 300 369 321 353 388 426 384 -10%

North America
United States 1,355 1,265 1,184 1,193 1,193 1,184 1,223 1,280 1,287 1,241 -4%
Others 146 127 127 126 125 125 129 132 136 128 -6%
Sub-total 1,501 1,392 1,311 1,319 1,318 1,309 1,352 1,413 1,423 1,370 -4%

Middle East
Turkey 104 77 78 78 83 83 77 84 67 71 5%
Others 116 94 109 108 95 100 119 144 126 135 7%
Sub-total 220 171 187 185 177 183 197 228 193 205 6%

South Asia
India 232 144 153 167 196 205 495 457 480 529 10%
Others 15 10 10 13 14 15 80 69 73 81 11%
Sub-total 247 154 163 180 210 220 576 526 553 610 10%

East Asia
China 693 721 718 709 717 738 813 975 1,081 1,221 13%
Japan 342 343 354 354 340 326 310 296 282 269 -4%
Taiwan 101 81 93 88 81 89 91 93 84 72 -14%
Others 163 143 163 146 146 152 168 187 176 167 -5%

Sub-total 1,299 1,289 1,329 1,297 1,283 1,304 1,381 1,551 1,622 1,729 7%

Other Regions
C&S America 108 95 105 109 110 112 118 129 136 123 -9%
Africa 92 86 89 90 89 89 95 112 101 104 3%
Oceania 64 61 61 60 60 58 53 49 49 47 -5%
Sub-total 264 242 254 258 258 260 266 291 286 273 -4%

Global Total 4,991 4,572 4,531 4,578 4,626 4,609 5,111 5,403 5,504 5,556 1%

Source: Metals Focus

68
 World Silver Survey 2024 Chapter 9: Appendices

Appendix 4 - Industrial Demand

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Europe
Germany 842 812 818 841 868 809 948 1,104 962 972 1%
France 283 269 262 270 283 290 263 300 319 338 6%
Italy 264 264 261 271 282 286 242 286 299 299 -0.1%
United Kingdom 501 461 492 595 626 692 721 797 722 295 -59%
Others 379 370 373 386 396 393 360 401 407 398 -2%
Sub-total 2,270 2,176 2,206 2,363 2,456 2,470 2,535 2,887 2,708 2,302 -15%

North America
United States 2,742 2,828 3,388 3,483 3,581 3,511 3,592 3,790 3,950 3,986 1%
Others 142 178 187 175 177 184 155 169 179 188 5%
Sub-total 2,885 3,006 3,575 3,658 3,757 3,695 3,746 3,959 4,128 4,174 1%

East Asia
China 3,295 3,541 3,545 3,988 4,161 4,182 4,087 4,676 5,642 8,124 44%
Japan 2,707 2,814 3,255 3,681 3,211 3,381 3,407 3,521 3,056 3,048 -0.3%
South Korea 629 590 561 593 595 571 541 582 629 607 -3%
Taiwan 328 318 310 292 302 275 281 295 308 292 -5%
Others 30 37 39 36 39 40 36 39 41 43 6%
Sub-total 6,989 7,299 7,710 8,591 8,309 8,449 8,351 9,113 9,675 12,113 25%

Other Regions
South Asia 1,178 1,110 1,116 1,162 1,250 1,175 832 1,065 1,324 1,288 -3%
Middle East 213 200 181 187 186 176 151 161 184 200 9%
Oceania 137 133 136 132 136 139 111 131 140 137 -3%
C&S America 219 215 223 201 129 88 52 60 62 61 -2%
CIS 59 47 50 51 53 56 48 55 46 49 5%
Africa 40 31 29 29 30 32 27 28 30 29 -3%
Sub-total 1,846 1,737 1,735 1,761 1,783 1,667 1,221 1,500 1,787 1,764 -1%

Global Total 13,989 14,218 15,227 16,372 16,305 16,281 15,853 17,459 18,298 20,353 11%

Appendix 5 - Electrical & Electronics Demand

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

China/Hong Kong 2,027 2,092 2,187 2,649 2,759 2,741 2,514 2,801 3,868 6,084 57%
Japan 2,290 2,358 2,830 3,241 2,765 2,934 3,004 3,067 2,589 2,567 -1%
United States 1,373 1,460 2,021 2,080 2,136 2,040 2,072 2,203 2,300 2,350 2%
Germany 568 539 550 569 592 533 666 799 639 649 1%
India 444 424 428 444 475 422 365 464 534 566 6%
South Korea 290 265 259 268 262 246 229 247 270 267 -1%
Others 1,402 1,333 1,335 1,315 1,306 1,264 1,164 1,343 1,348 1,362 1%
Global Total 8,393 8,470 9,609 10,566 10,296 10,180 10,014 10,924 11,548 13,846 20%

Source: Metals Focus

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 Chapter 9: Appendices World Silver Survey 2024

Appendix 6 - Brazing Alloys & Solder Demand

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

China 776 792 749 761 772 781 701 689 606 635 5%
United States 187 177 182 192 198 202 186 203 210 215 2%
Germany 144 137 133 132 130 126 135 146 156 158 1%
India 70 66 67 69 71 68 54 85 94 96 2%
South Korea 84 80 70 75 74 71 66 70 72 76 5%
Others 399 337 325 355 371 381 336 377 391 382 -2%
Global Total 1,660 1,589 1,527 1,582 1,617 1,629 1,479 1,570 1,529 1,561 2%

Appendix 7 - Photographic Demand

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Europe & N. America 931 847 755 696 666 641 634 636 617 609 -1%
East Asia 304 299 280 270 262 259 202 226 238 230 -3%
Others 41 41 45 42 49 56 - - - - na
Global Total 1,276 1,188 1,080 1,009 977 956 836 862 855 840 -2%

Appendix 8a - Physical Investment

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

United States 3,482 3,882 3,144 1,732 1,475 1,501 2,933 4,297 4,218 3,673 -13%
India 3,136 3,435 1,136 1,259 1,680 1,757 269 858 2,470 1,534 -38%
Germany 635 735 810 760 857 1,177 1,445 1,564 1,522 410 -73%
Australia 135 133 158 104 111 109 354 497 609 380 -38%
Canada 230 237 225 147 142 156 232 329 374 244 -35%
China 459 434 429 292 280 245 269 243 229 244 7%
Other Europe 260 242 398 330 402 416 389 471 510 428 -16%
Other Asia 279 258 269 214 227 423 415 397 374 310 -17%
Others 187 266 52 7 -15 43 167 188 181 338 87%
Global Total 8,803 9,621 6,621 4,844 5,160 5,828 6,474 8,844 10,486 7,562 -28%

Appendix 8b - Coins & Medals Fabrication

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

United States 1,444 1,527 1,225 601 532 637 1,018 1,001 656 905 38%
Canada 959 1,102 1,045 588 572 716 897 1,132 1,114 728 -35%
Australia 266 394 409 333 325 394 537 622 751 478 -36%
UK 67 109 109 96 109 99 302 489 620 458 -26%
India 176 224 220 257 328 351 161 210 524 367 -30%
Austria 144 227 107 64 65 90 224 382 381 311 -18%
China 426 426 400 268 269 226 251 227 219 230 5%
South Africa 0 18 0 36 116 112 244 320 238 105 -56%
Germany 40 60 135 125 125 120 120 120 120 90 -25%
Others 227 243 216 207 216 247 237 272 293 274 -6%
Global Total 3,750 4,328 3,867 2,575 2,656 2,993 3,991 4,774 4,918 3,947 -20%

Source: Metals Focus

70
 World Silver Survey 2024 Chapter 9: Appendices

Appendix 9 - Jewelry Demand

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

Europe
Italy 606 622 586 605 601 619 504 655 677 655 -3%
Germany 105 108 104 107 108 109 95 112 107 101 -5%
Others 208 209 204 205 203 203 169 197 211 218 3%
Sub-total 919 938 894 917 912 931 768 964 995 974 -2%

North America
United States 404 425 403 410 404 402 359 412 398 348 -13%
Canada 121 110 112 105 101 101 83 115 114 127 11%
Mexico 168 177 180 153 155 139 97 68 72 77 6%
Sub-total 693 711 695 668 659 642 539 595 584 552 -6%

Middle East
Turkey 195 208 152 153 184 186 138 215 225 214 -5%
Others 82 97 92 87 112 100 87 104 122 128 6%
Sub-total 277 305 244 240 296 286 225 318 347 342 -1%

South Asia
India 1,404 1,760 1,677 1,995 2,256 2,148 1,260 1,827 3,472 2,604 -25%
Others 52 65 62 73 83 79 46 65 107 102 -4%
Sub-total 1,455 1,825 1,739 2,069 2,339 2,227 1,307 1,892 3,579 2,706 -24%

East Asia
Thailand 769 877 828 837 785 886 745 726 737 691 -6%
China 1,280 1,050 893 794 755 709 589 648 531 504 -5%
Indonesia 191 152 163 157 163 175 149 117 128 145 13%
Others 182 187 177 179 179 183 157 165 166 164 -1%
Sub-total 2,421 2,267 2,060 1,967 1,881 1,953 1,639 1,656 1,562 1,504 -4%

Other Regions 251 253 251 243 234 232 216 236 227 240 5%

Global Total 6,018 6,300 5,883 6,103 6,322 6,270 4,694 5,661 7,295 6,318 -13%

Appendix 10 - Silverware Demand

Tons 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Y/Y

India 952 1,151 1,061 1,236 1,442 1,282 541 758 1,667 1,167 -30%
Nepal 110 134 123 143 167 149 63 88 193 135 -30%
China 188 122 98 105 107 103 77 85 72 65 -10%
Italy 88 86 78 71 68 63 39 53 54 56 3%
Turkey 20 19 17 17 22 29 26 39 47 50 8%
United States 40 40 40 40 39 39 40 41 43 43 -0.1%
Others 265 262 248 236 241 240 183 204 211 201 -5%
Global Total 1,663 1,813 1,664 1,848 2,086 1,906 969 1,267 2,286 1,717 -25%

Source: Metals Focus

71
 Chapter 9: Appendices World Silver Survey 2024

Appendix 11 - Top 30 Silver Producing Mines Million ounces

Mine Country Ownership 2022 2023 Y/Y

1 KGHM Polska Miedź1 Poland KGHM Polska Miedz (100%) 40.9 41.1 0%

2 Sindesar Khurd2 3 ,
India Hindustan Zinc Ltd.(100%) 17.9 19.0 6%

3 Peñasquito Mexico Newmont (100%) 30.0 18.0 -40%

4 Juanicipio Mexico Fresnillo (56%) / MAG Silver (44%) 9.2 16.8 82%

5 Dukat Russia Polymetal International (100%) 18.3 14.9 -19%

6 San Julian Mexico Fresnillo (100%) 14.3 13.4 -6%

7 Fresnillo Mexico Fresnillo (100%) 13.6 12.8 -6%

8 Cannington1 Australia South32 (100%) 11.7 12.4 6%

9 Saucito Mexico Fresnillo (100%) 12.0 12.1 1%

10 Antamina Peru Glencore (33.75%) / BHP (33.75%) / Teck Metals Corp. (22.5%) 14.7 11.6 -21%

11 Greens Creek United States Hecla Mining Company (100%) 9.7 9.7 0%

12 Puna Argentina SSR Mining Inc. (100%) 8.4 9.7 15%

13 Cerro Los Gatos Mexico Gatos Silver Inc. (70%) / Dowa Metals and Mining Co. Ltd. (30%) 10.3 9.2 -11%

14 Collahuasi Chile Glencore (44%) / Anglo American (44%) / Mitsui & Co (12%) 7.6 9.2 20%

15 San Cristobal2 Bolivia Minera San Cristobal (100%) 7.6 8.1 7%

16 Yauli Peru Volcan Compañía Minera (100%) 6.7 7.8 16%

17 Chuquicamata 1, 2
Chile Codelco (100%) 8.5 7.8 -8%

18 La Coipa Chile Kinross Gold (100%) 4.2 7.7 83%

19 Garpenberg Sweden Boliden (100%) 8.8 7.4 -16%

20 Toromocho Peru Chinalco (100%) 6.5 7.1 9%

21 Red Dog 2
United States Teck Metals Corp. (100%) 6.5 6.7 4%

22 Palmarejo Mexico Coeur Mining (100%) 6.7 6.6 -2%

23 Ministro Hales1, 2 Chile Codelco (100%) 7.6 6.5 -14%

24 Grasberg4 Indonesia Government of Indonesia (51.2%) / Freeport McMoRan (48.8%) 6.3 6.0 -5%

25 Guanacevi Mexico Endeavour Silver (100%) 5.6 6.0 6%

26 Tizapa Mexico Industrias Peñoles (51%) / Dowa Mining Corporation (39%) 5

5.8 5.8 1%

27 San Bartolome2 Bolivia Andean Precious Metals Corp. (100%) 5.7 5.7 -0.3%

28 Las Chispas Mexico SilverCrest Metals (100%) 1.2 5.7 371%

29 Ying China Silvercorp Metals (77.5%) 6

6.1 5.6 -8%

30 Inmaculada Peru Hochschild Mining (100%) 5.9 5.5 -7%

NB: All numbers are silver contained in concentrate or doré unless stated otherwise, 1: Payable metal , 2: Estimate, 3: Refined silver, 4: Silver
sold, 5: Sumitomo Corporation (10%), 6: Henan Non-Ferrous Geological & Mineral Resources Co (22.5%).

72
 Appendix 11 - Top 30 Silver Producing Mines

5
21 19
11

1
28 7
13
22 6 29
25 4
9 2
3
26

24

10 20 27
World Silver Survey 2024

16 15
14 8
12
30 17
23

18
KEY
Primary silver mine
Primary gold mine
Primary copper mine
Primary lead/zinc mine

Source: Company Reports, Metals Focus

73
Chapter 9: Appendices
 Chapter 9: Appendices World Silver Survey 2024

Appendix 12a - Top 20 Producing Appendix 12b - Top 20 Producing

Companies Countries

Tons 2022 2023 Y/Y Tons 2022 2023 Y/Y

Fresnillo1 1,588 1,663 5% Mexico 6,630 6,290 -5%
KGHM Polska Miedź2 3 ,
1,327 1,428 8% China 3,478 3,399 -2%
Hindustan Zinc Ltd.4, 5 694 739 6% Peru 3,330 3,331 0%
Pan American Silver 574 636 11% Chile 1,302 1,617 24%
Glencore 739 622 -16% Bolivia 1,207 1,326 10%
CODELCO6 649 596 -8% Poland 1,319 1,323 0%
Industrias Peñoles 7
495 589 19% Russia 1,280 1,236 -3%
Southern Copper 577 573 -1% Australia 1,166 1,071 -8%
Newmont 923 560 -39% United States 1,032 996 -3%
Polymetal Intl. 653 551 -16% Argentina 959 808 -16%
Volcan Cia Minera 445 473 6% India 694 739 6%

Hecla Mining 441 446 1% Kazakhstan 479 516 8%

South328 383 404 6% Sweden 456 392 -14%

BHP 8
364 368 1% Indonesia 321 319 -1%

Boliden8 377 322 -15% Morocco 271 275 1%

Nexa Resources 310 320 3% Uzbekistan 219 239 9%

Coeur Mining 305 319 4% Canada 269 221 -18%

First Majestic Silver 327 319 -3% Papua New Guinea 94 134 42%

SSR Mining 261 301 15% Spain 108 114 6%

Hochschild Mining 342 296 -14% Brazil 76 103 36%

NB: 1 - Excludes Silverstream contract, 2 - Reported metallic

Others 1,334 1,380 3%
production, 3 - KGHM Group figures including Polish and Global Total 26,025 25,830 -1%
international operations, 4 - Hindustan Zinc is a Vedanta Group
Source: Metals Focus
company, 5 - Production from integrated operations only, 6 -
Estimate, 7 - Excludes 100% Fresnillo, 8 - Payable production.
Source: Company Reports, Metals Focus

Appendix 12c - Mine Production

Forecast by Region

Tons 2023 2024F Y/Y

N America 7,508 7,808 4%
C&S America 7,483 6,808 -9%
Asia 4,834 4,756 -2%
CIS 2,161 2,230 3%
Europe 2,074 2,034 -2%
Oceania 1,208 1,238 2%
Africa 562 739 31%
Global Total 25,830 25,613 -1%

Source: Metals Focus

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 World Silver Survey 2024 Chapter 9: Appendices

Appendix 13 - Primary Silver Production Costs (by-product1) Year on Year

US$/oz (by-product) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2022 2023

North America
Total Cash Cost 7.50 6.43 3.47 2.17 2.64 4.27 3.88 4.72 5.28 9.14 12% 73%
Total Production Cost 13.43 11.66 8.56 8.09 8.44 10.73 10.34 11.20 11.76 16.18 5% 38%
All-In Sustaining Cost 14.61 12.55 8.51 9.20 10.53 12.17 11.28 14.09 15.52 19.44 10% 25%
Central & South America
Total Cash Cost 10.48 9.66 7.53 7.48 5.74 7.37 9.29 7.27 7.46 7.11 3% -5%
Total Production Cost 14.55 14.05 10.56 10.46 8.97 11.28 14.41 11.45 11.12 11.95 -3% 7%
All-In Sustaining Cost 15.36 13.76 11.12 12.12 11.03 12.26 16.10 13.07 14.28 14.55 9% 2%
CIS
Total Cash Cost 7.21 4.99 4.35 6.98 7.60 8.54 7.64 5.71 9.10 12.93 59% 42%
Total Production Cost 9.43 6.39 5.81 9.19 10.28 10.34 9.31 7.88 12.09 15.92 53% 32%
All-In Sustaining Cost 9.32 6.41 5.85 9.46 9.76 11.28 9.81 8.93 12.88 17.05 44% 32%
Asia
Total Cash Cost 1.03 1.11 -2.02 -4.58 -4.42 -2.36 -0.99 -0.32 0.14 0.56 na 309%
Total Production Cost 4.58 4.92 0.88 -1.84 -1.29 0.84 2.66 3.72 3.40 3.82 -9% 12%
All-In Sustaining Cost 8.89 9.59 3.53 3.61 1.51 3.65 5.60 6.09 7.49 8.91 23% 19%
Oceania
Total Cash Cost 1.99 2.16 -1.90 -2.12 -3.12 3.46 0.24 -6.52 -5.12 3.34 na na
Total Production Cost 4.21 4.59 1.22 2.19 0.55 8.66 14.84 12.53 5.48 9.30 -56% 70%
All-In Sustaining Cost 5.27 5.52 1.22 2.83 2.66 9.14 6.71 -2.90 1.45 9.81 na 577%
Global Total
Total Cash Cost 7.77 6.88 4.44 3.86 3.30 5.14 4.79 4.23 5.19 8.38 23% 61%
Total Production Cost 12.22 11.09 8.19 8.31 7.91 10.31 11.00 10.74 10.96 14.36 2% 31%
All-In Sustaining Cost 13.22 11.56 8.50 9.65 9.75 11.56 11.34 11.67 13.76 17.18 18% 25%
Source: Metals Focus

Global Primary Silver Mine Production Costs in 2023 (by-product)

US$/oz (by-product1) US$/oz (by-product1)
40 40
35 35
30 30
2023 Silver Price ($23.35/oz)
25 25
20 20
2022 Silver Price ($21.73/oz)
15 15
10 10
5 5
0 0
-5 -5
-10 -10
-15 All-In Sustaining - 2022 All-In Sustaining - 2023 -15
-20 -20
0 10 20 30 40 50 60 70 80 90 100

Cumulative Silver Production (%)

1: Costs shown on a by-product accounting basis; Source: Metals Focus Silver Mine Cost Service

75
 Chapter 9: Appendices World Silver Survey 2024

Appendix 14 - Mine Production by Region & Primary Metal Year on Year

Million ounces 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2022 2023

Regional Breakdown
North America 238.5 239.0 222.8 232.8 236.1 232.6 221.3 237.7 255.0 241.4 7% -5%
C&S America 285.3 297.1 309.8 283.5 265.5 253.9 213.9 238.6 231.0 240.6 -3% 4%
Asia 149.6 156.8 163.7 157.0 155.6 151.3 152.7 159.4 158.4 155.4 -1% -2%
CIS 73.6 77.0 74.3 71.5 72.9 72.3 70.5 65.5 68.2 69.5 4% 2%
Europe 56.4 60.3 62.6 62.9 63.3 64.3 64.0 67.2 66.9 66.7 -0.4% -0.3%
Oceania 63.1 48.9 49.2 38.6 43.6 47.4 46.9 45.8 40.7 38.8 -11% -4%
Africa 15.4 17.7 17.5 17.4 13.6 15.2 14.1 14.9 16.6 18.1 11% 9%
Global Total 882.0 896.8 899.8 863.6 850.6 837.2 783.4 829.0 836.7 830.5 1% -1%

Global Breakdown
Primary Silver 285.9 291.0 288.4 263.6 247.0 236.1 207.8 227.9 236.5 235.2 4% -1%
Gold 142.7 150.3 134.7 130.8 131.2 130.7 123.0 129.1 129.6 113.8 0.4% -12%
Copper 182.7 188.9 205.5 199.6 197.3 192.8 207.6 210.7 213.1 221.4 1% 4%
Lead/Zinc 265.1 261.3 264.7 262.8 268.0 272.5 240.2 257.2 253.3 255.8 -2% 1%
Other 5.5 5.3 6.5 6.7 7.0 5.1 4.8 4.2 4.2 4.3 -0.3% 2%
Global Total 882.0 896.8 899.8 863.6 850.6 837.2 783.4 829.0 836.7 830.5 1% -0.7%

Global Breakdown (Percentage)

Primary Silver 32.4% 32.4% 32.1% 30.5% 29.0% 28.2% 26.5% 27.5% 28.3% 28.3%
Gold 16.2% 16.8% 15.0% 15.2% 15.4% 15.6% 15.7% 15.6% 15.5% 13.7%
Copper 20.7% 21.1% 22.8% 23.1% 23.2% 23.0% 26.5% 25.4% 25.5% 26.7%
Lead/Zinc 30.1% 29.1% 29.4% 30.4% 31.5% 32.5% 30.7% 31.0% 30.3% 30.8%
Other 0.6% 0.6% 0.7% 0.8% 0.8% 0.6% 0.6% 0.5% 0.5% 0.5%

Source: Metals Focus

Mine Production by Mine Production by Source

Region in 2023 Metal in 2023
Primary Silver

Base
Metal

Gold

N America C&S America Asia

Asia N America
N America C&S America Asia
C&S America
CIS Europe Oceania CIS Asia Europe CIS Oceania
Africa Africa Europe Oceania

Source: Metals Focus Source: Metals Focus

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 World Silver Survey 2024 Chapter 9: Appendices

Appendix 15 - Nominal Silver Prices

Average1 Low 2 High2

€/kg3 CNY/kg4 INR/kg JPY/g A$/oz MXN/oz PEN/oz
Year US$/oz US$/oz US$/oz

1991 4.06 3.61 4.57 103.83 696.01 2,970 17.55 5.20 12.24 n/a
1992 3.95 3.65 4.34 96.01 701.10 3,563 16.08 5.37 12.21 5.95
1993 4.31 3.56 5.50 116.86 801.22 4,334 15.33 6.34 13.43 8.60
1994 5.28 4.54 5.95 141.23 1,462.51 5,335 17.36 7.22 17.90 11.61
1995 5.20 4.32 6.15 125.98 1,394.85 5,419 15.71 7.01 33.34 11.71
1996 5.20 4.68 5.88 129.41 1,389.91 5,917 18.16 6.64 39.48 12.69
1997 4.90 4.18 6.40 139.28 1,305.19 5,726 19.09 6.59 38.78 13.01
1998 5.54 4.60 7.93 160.42 1,473.76 7,322 23.31 8.80 50.66 16.21
1999 5.22 4.84 5.81 157.47 1,388.99 7,227 19.08 8.09 49.85 17.65
2000 4.95 4.56 5.56 172.64 1,318.16 7,152 17.16 8.51 46.85 17.28

2001 4.37 4.04 4.86 156.90 1,162.98 6,628 17.06 8.44 40.79 15.33
2002 4.60 4.23 5.15 156.79 1,223.84 7,185 18.50 8.45 44.46 16.17
2003 4.88 4.34 6.01 138.66 1,297.84 7,294 18.14 7.47 52.65 16.96
2004 6.66 5.46 8.45 172.08 1,771.68 9,693 23.12 9.03 75.16 22.71
2005 7.31 6.33 9.27 189.58 1,924.82 10,378 25.97 9.59 79.63 24.10
2006 11.55 8.69 15.22 295.04 3,091.08 16,831 43.17 15.33 125.96 37.81
2007 13.38 11.06 16.22 314.15 3,029.76 17,779 50.64 15.95 146.26 41.87
2008 14.99 8.46 21.36 324.36 3,014.45 20,648 50.16 17.59 167.31 43.81
2009 14.67 10.35 19.46 336.95 2,810.23 22,768 44.01 18.50 198.11 44.16
2010 20.19 14.66 30.95 489.62 3,920.91 29,632 56.54 21.93 255.04 57.03

2011 35.12 26.09 49.80 809.49 6496.25 52,523 89.92 34.00 437.00 96.70
2012 31.15 26.15 37.48 778.30 5,532.74 53,380 79.93 30.07 409.80 82.17
2013 23.79 18.22 32.46 576.50 4,132.84 44,480 74.25 24.58 303.63 64.32
2014 19.08 14.42 22.18 460.87 3,421.89 37,405 64.64 21.14 254.00 54.17
2015 15.68 13.65 18.49 454.23 2,918.65 32,289 61.00 20.84 249.01 49.95
2016 17.14 13.75 21.14 497.60 3,262.84 37,004 59.56 23.03 320.28 57.83
2017 17.05 15.19 18.65 486.59 3,356.49 35,700 61.46 22.23 322.44 55.59
2018 15.71 13.90 17.70 427.23 3,094.63 34,462 55.73 21.01 302.06 51.63
2019 16.21 14.29 19.65 465.80 3,416.90 36,719 56.77 23.31 311.99 54.08
2020 20.55 11.64 29.86 575.02 4,149.86 48,907 70.33 29.73 441.46 71.82

2021 25.14 21.42 30.10 682.61 4,608.13 59,729 88.66 33.46 509.90 97.66
2022 21.73 17.56 26.94 662.22 4,176.88 54,813 91.33 31.28 437.06 83.34
2023 23.35 19.90 26.14 694.09 4,919.81 61,981 105.56 35.14 414.20 87.40

1: Average US$ prices are based on the daily London Silver Fixing and (since 08/15/2014) the daily LBMA Silver Price. Unless otherwise specified, these US$
prices in conjunction with Bloomberg Closing exchange rates have been used to illustrate annual average prices in other currencies.
2: High and low derived from intra-day spot prices
3: Euro price based on euro-quoted LBMA PM Fix from 1999 onwards and the dollar price converted into euros using Bloomberg synthetic exchange rates
prior to that time
4: CNY price is the SGE AG (T+D) from 2006 onwards and based on London Silver Fixing converted into renminbi using Bloomberg exchange rates prior to that
time. VAT has been subtracted from the quoted price.
Currency key: € - Euro, CNY - Chinese Yuan, INR - Indian Rupee, JPY - Japanese Yen, AUD - Australian dollar, MXN - Mexican peso, PEN - Peruvian nuevo sol
Source: Metals Focus, Bloomberg

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 Chapter 9: Appendices World Silver Survey 2024

Appendix 16 - Real Silver Prices (Inflation Adjusted)

Average1 Low 2 High2

€/kg3 CNY/kg4 INR/kg5 JPY/g A$/oz MXN/oz PEN/oz
Year US$/oz US$/oz US$/oz

1993 9.07 7.49 11.57 217.37 2,086.66 30,124 17.17 14.10 128.46 n/a
1994 10.83 9.30 12.19 254.75 3,068.46 33,634 19.29 15.64 159.81 34.36
1995 10.39 8.63 12.29 220.58 2,499.59 30,994 17.53 14.46 196.15 31.40
1996 10.06 7.74 11.37 222.38 2,299.55 31,055 20.14 13.49 181.75 30.47
1997 9.31 7.37 12.17 235.84 2,100.74 28,045 20.80 13.42 154.18 29.31
1998 10.36 8.23 14.84 269.61 2,391.00 31,669 25.25 17.66 169.92 34.54
1999 9.51 8.81 10.59 260.15 2,285.78 29,861 20.89 15.93 148.83 36.18
2000 8.73 7.10 10.57 278.28 2,160.23 28,413 18.88 15.85 128.34 34.13

2001 7.59 6.89 8.55 247.82 1,892.83 25,372 18.98 15.24 107.08 30.32
2002 7.80 7.17 8.72 242.03 2,007.97 26,374 20.64 14.83 110.36 31.51
2003 8.12 7.24 10.00 209.90 2,104.15 25,792 20.32 12.79 125.70 32.26
2004 10.73 8.79 13.62 254.58 2,764.60 33,031 25.86 15.09 170.62 41.74

2005 11.40 9.86 14.45 274.29 2,950.49 33,922 29.17 15.58 174.97 43.63

2006 17.56 12.99 23.14 418.90 4,667.78 52,002 48.32 24.09 265.91 67.67
2007 19.55 16.15 23.69 432.76 4,365.71 51,638 56.33 24.37 297.60 72.11
2008 21.87 12.34 31.16 439.89 4,101.83 55,351 55.57 25.91 319.49 70.75
2009 20.84 14.68 27.65 452.76 3,851.20 55,045 49.58 26.70 365.36 71.15
2010 28.26 20.52 43.31 643.68 5,201.91 63,969 63.90 30.80 450.46 90.01
2011 47.74 35.46 67.70 1,035.65 8,177.79 104,108 101.84 46.37 743.52 145.70
2012 41.62 34.94 50.07 974.15 6,788.26 96,645 90.72 40.13 673.23 120.62
2013 31.32 23.98 42.72 715.50 4,941.96 73,199 82.95 31.92 479.93 91.79
2014 24.92 18.84 28.98 572.97 4,011.57 57,709 70.52 26.99 385.57 74.89
2015 20.34 17.70 23.97 563.30 3,374.33 47,486 66.41 26.17 370.16 66.14
2016 21.77 17.46 26.86 610.38 3,698.31 51,855 64.64 28.50 460.58 74.19
2017 21.21 18.90 23.21 588.95 3,744.78 48,415 66.04 27.00 434.37 70.35
2018 19.18 16.97 21.62 509.35 3,381.49 44,965 59.70 25.05 388.07 63.93
2019 19.35 17.06 23.46 548.07 3,630.93 46,188 60.33 27.30 389.91 65.72
2020 24.19 13.71 35.16 678.38 4,299.47 57,697 75.64 34.52 534.80 85.59
2021 27.65 23.57 33.12 767.22 4,731.53 67,025 94.6 37.54 575.38 109.35
2022 22.46 18.15 27.85 681.62 4,204.36 57,647 93.7 32.55 457.43 86.04
2023 23.35 19.90 26.14 694.09 4,919.81 61,981 105.56 35.14 414.20 87.40

Based on respective countries’ CPI. €/kg based on Eurozone CPI Index (Values until 1996 calculated using the Harmonized Index of Consumer Prices).
1: Average US$ prices are based on the daily London Silver Fixing and (since 08/15/2014) the daily LBMA Silver Price. Unless otherwise specified, these US$
prices in conjunction with Bloomberg Closing exchange rates have been used to illustrate annual average prices in other currencies.
2: High and low derived from intra-day spot prices
3: Euro price based on euro-quoted LBMA PM Fix from 1999 onwards and the dollar price converted into euros using Bloomberg synthetic exchange rates
prior to that time.
4: CNY price is the SGE AG (T+D) from 2006 onwards and based on London Silver Fixing converted into renminbi using Bloomberg exchange rates prior to that
time. VAT has been subtracted from the quoted price.
5. Indian prices were calculated based on the average CPI in the first ten months in 2023.
Currency key: € - Euro, CNY - Chinese Yuan, INR - Indian Rupee, JPY - Japanese Yen, AUD - Australian dollar, MXN - Mexican peso, PEN - Peruvian nuevo sol
Source: Metals Focus, Bloomberg

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 World Silver Survey 2024 Chapter 9: Appendices

Appendix 17 - LBMA & CME Silver Prices

LBMA1 CME 2
US$/oz

Year/Month Low High Average Low High Average

2006 8.83 14.94 11.55 8.87 14.94 11.62

2007 11.67 15.82 13.38 11.50 15.55 13.47
2008 8.88 20.92 14.99 8.79 20.79 15.00
2009 10.51 19.18 14.67 10.44 19.33 14.71
2010 15.14 30.70 20.19 14.83 30.94 20.26

2011 26.16 48.70 35.12 26.81 48.60 35.27

2012 26.67 37.23 31.15 26.29 37.21 31.19
2013 18.61 32.23 23.79 18.55 32.44 23.78
2014 15.28 22.05 19.08 15.41 22.09 19.07
2015 13.71 18.23 15.68 13.70 18.36 15.68
2016 13.58 20.71 17.14 13.75 20.70 17.18
2017 15.22 18.56 17.05 15.43 18.51 17.08
2018 13.97 17.52 15.71 13.98 17.62 15.72
2019 14.38 19.31 16.21 14.32 19.55 16.24
2020 12.01 28.89 20.55 11.77 29.26 20.72

2021 21.53 29.59 25.14 21.49 29.42 25.17

2022 17.77 26.18 21.73 17.67 26.90 21.82
2023 20.09 26.03 23.35 20.15 26.23 23.58

Jan-23 23.00 24.30 23.75 23.42 24.37 23.85

Feb-23 20.53 24.44 22.01 20.79 23.62 21.99
Mar-23 20.09 23.89 21.92 20.15 24.16 22.09
Apr-23 23.93 26.03 25.00 24.02 25.93 25.22
May-23 23.01 25.84 24.15 22.91 26.23 24.47
Jun-23 22.34 24.32 23.41 22.55 24.41 23.55
Jul-23 22.72 25.18 24.04 22.89 25.39 24.37
Aug-23 22.41 24.62 23.44 22.73 25.14 23.73
Sep-23 22.55 24.65 23.24 22.45 24.56 23.38
Oct-23 21.06 23.22 22.32 21.02 23.50 22.48
Nov-23 22.08 25.02 23.39 22.28 25.66 23.74
Dec-23 22.73 25.17 23.99 22.92 25.86 24.21

Jan-24 22.20 23.95 22.95 22.30 23.95 23.02

Feb-24 22.09 23.23 22.68 22.15 23.48 22.80

1: Prices are based on the daily London Silver Fixing and (since 08/15/2014) the daily LBMA Silver Price.
2: Prices are based on the generic 1st futures contract.
Source: LBMA, CME Group, Bloomberg

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 Chapter 9: Appendices World Silver Survey 2024

Appendix 18 - Year-End One-Month Silver Option Volatility Skew

35

30

25
%

20

15

2017 2019 2021 2023

Source: Bloomberg

Appendix 19 - CME Activity & Inventories

Moz Futures Managed Money Positions in CME Futures

CME
Year/Month Volume1 Open Interest 2 Long2 Short 2 Net 2 Net Change3
Inventories2
2019 120,746 1,149 429 135 294 250 317
2020 130,633 857 361 131 230 -64 397
2021 98,348 701 252 165 87 -143 356
2022 85,383 649 225 81 144 57 299
2023 90,648 671 183 99 84 -60 278

Jul-23 5,950 724 241 143 98 43 282

Aug-23 9,347 654 217 135 82 -16 278
Sep-23 6,467 639 164 137 26 -56 270
Oct-23 7,195 633 140 117 23 -3 268
Nov-23 8,938 714 228 109 119 96 266
Dec-23 6,286 671 183 99 84 -35 278

Jan-24 6,544 682 164 143 22 -62 275

Feb-24 8,869 714 166 187 -20 -42 282

1: Aggregate volume over the period, 2: Position at end-period, 3: Net change versus previous end-period
Source: CME Group, CFTC, Bloomberg

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 World Silver Survey 2024 Chapter 9: Appendices

Appendix 20 - LBMA Silver Trading Volumes

Moz Spot Swap & Option Loan, Lease Total
Forward & Deposit
Year/Month
2019 65,355 34,670 3,235 2,271 105,530
2020 70,002 29,794 3,207 2,266 105,269
2021 62,451 29,164 4,288 4,526 100,430
2022 62,291 29,524 2,661 8,981 68,341
2023 66,352 30,980 2,607 6,910 68,960

Oct-23 5,896 2,569 270 550 6,165

Nov-23 4,604 2,044 245 471 4,849
Dec-23 3,781 1,760 126 397 3,908
Jan-24 5,451 2,982 263 835 5,714
Feb-24 3,531 1,489 95 456 3,626

Source: LBMA, Nasdaq, Bloomberg

Appendix 21 - Chinese Silver Exchanges’ Activity

Moz Shanghai Gold Exchange Shanghai Futures Exchange

Ag (T +D) Ag99.99 Futures Futures SHFE

Year/Month
Volume 1
Volume 1
Volume 1
Open Interest 2
Inventories2
2018 12,596 6.1 20,428 174 36
2019 27,824 3.7 68,878 370 63
2020 67,191 5.7 172,279 349 95
2021 22,150 4.3 111,623 321 76
2022 5,872 3.1 91,037 464 69
2023 2,429 3.0 115,394 433 38

Jul-23 197 0.2 9,782 449 51

Aug-23 207 0.2 9,380 418 43
Sep-23 191 0.1 8,256 407 40
Oct-23 139 0.7 7,582 459 35
Nov-23 209 0.6 12,352 494 33
Dec-23 160 0.3 8,772 433 38

Jan-24 163 0.3 6,410 419 29

Feb-24 94 0.1 3,363 417 32

1: Aggregate volume over the period, 2: Position at end-period;

N.B. Both the SGE and SHFE record each transaction twice, from the point of view of the buyer and also the seller. However, to compare these volumes with
other exchanges, such as the CME, the figures in the table have been halved (as shown above). From 2020 onward, SHFE has been reporting the trading
volume and open interest single-sided.

Source: SGE, SHFE, Bloomberg

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 Chapter 9: Appendices World Silver Survey 2024

Appendix 22 - Physically Backed Silver Exchange-Traded Product Holdings*

iShares ZKB WisdomTree Sprott Sprott Others Total Total

Moz
Silver Trust Silver Gold & Silver Holdings Value
Year/Month (Moz) ($M)
2014 330 77 37 49 77 59 629 10,060
2015 318 69 41 49 77 58 612 8,469
2016 341 72 53 56 76 65 663 10,827
2017 321 80 60 56 75 78 670 11,364
2018 317 79 52 56 64 78 647 10,090
2019 363 83 69 60 58 96 729 13,276
2020 559 93 94 91 60 170 1,067 28,255
2021 531 100 95 154 60 191 1,132 26,127
2022 467 96 61 171 58 153 1,006 24,089
2023 437 100 53 171 57 146 964 23,790

Jan-22 534 100 98 154 60 191 1,137 25,571

Feb-22 546 100 101 154 60 188 1,148 27,959
Mar-22 559 99 96 159 59 172 1,144 28,388
Apr-22 575 98 94 161 59 163 1,151 26,989
May-22 556 99 94 161 59 160 1,129 24,581
Jun-22 541 98 82 161 59 157 1,099 22,433
Jul-22 484 98 82 161 59 156 1,039 20,852
Aug-22 466 98 81 161 59 155 1,020 18,308
Sep-22 481 98 61 164 59 154 1,017 19,346
Oct-22 483 97 60 167 59 153 1,019 19,533
Nov-22 479 98 62 170 58 152 1,018 21,952
Dec-22 467 96 61 171 58 153 1,006 24,089

Jan-23 478 96 60 171 58 156 1,018 22,995

Feb-23 479 95 57 171 58 157 1,017 20,525
Mar-23 465 97 59 173 58 156 1,009 23,885
Apr-23 468 96 59 175 58 158 1,014 24,765
May-23 468 96 57 175 58 160 1,013 23,255
Jun-23 468 96 55 175 58 159 1,011 22,470
Jul-23 452 96 56 175 58 156 993 24,355
Aug-23 439 95 55 176 58 153 977 24,535
Sep-23 442 94 54 172 58 151 972 23,075
Oct-23 442 94 54 172 58 148 968 23,200
Nov-23 434 94 53 171 58 145 955 25,020
Dec-23 437 100 53 171 57 146 964 23,790

Jan-24 439 99 53 171 57 147 966 23,090

Feb-24 431 98 51 171 56 147 954 22,340

*Holdings at end-period; value calculated basis end-period price.

Source: Respective ETP providers, Bloomberg

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 World Silver Survey 2024 Chapter 9: Appendices

Appendix 23a - Selected Swiss Silver Bullion Exports in 2023

UK
4Moz 7Moz
Germany
3Moz Switzerland
15Moz
France 6Moz
USA Italy Turkey
India
13Moz

Thailand
2Moz

4Moz

NB: In gross weight terms, exports shown account for 82% of total Swiss silver bullion exports in 2023.
Source: Swiss Customs Administration, Metals Focus

Appendix 23b - Selected Swiss Silver Bullion Imports in 2023

Sweden

2Moz
Germany
2Moz
Switzerland
2Moz Turkey
4Moz China
4Moz Italy 9Moz
2Moz Morocco
2Moz Hong Kong

9Moz

Peru

Argentina

NB: In gross weight terms, imports shown account for 80% of total Swiss silver bullion imports in 2023.
Source: Swiss Customs Administration, Metals Focus

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 Chapter 9: Appendices World Silver Survey 2024

Appendix 24a - Selected United Kingdom Silver Bullion Exports in 2023

5Moz
UK
Canada 12Moz
27Moz
3Moz Germany
Belgium
6Moz Switzerland

Italy
6Moz Spain Turkey
India

9Moz

48Moz

NB: In gross weight terms, exports shown account for 98% of total UK silver bullion exports in 2023
Source: HM Customs & Excise, Metals Focus

Appendix 24b - Selected United Kingdom Silver Bullion Imports in 2023

3Moz
UK 8Moz 16Moz
Poland 51Moz
10Moz Kazakhstan
Germany
4Moz Spain Uzbekistan Japan
China
4Moz
India

Hong Kong

4Moz

20Moz

NB: In gross weight terms, imports shown account for 91% of total UK silver bullion imports in 2023
Source: HM Customs & Excise, Metals Focus

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 World Silver Survey 2024 Chapter 9: Appendices

Appendix 25 - Selected Hong Kong Silver Bullion Exports in 2023

Switzerland 14Moz
UK

USA
66Moz
India
Taiwan 20Moz

36Moz Hong Kong

9Moz
Thailand 6Moz
20Moz

Australia

NB: In gross weight terms, exports shown account for 87% of total Hong Kong silver bullion exports in 2023
Source: Hong Kong Census & Statistics Department, Metals Focus

Appendix 26 - Selected Indian Silver Bullion Imports in 2023

48Moz

UK
3Moz

Switzerland
China
India
5Moz

UAE 31Moz Hong Kong

14Moz

3Moz Singapore

NB: In gross weight terms, imports shown account for 90% of total Indian silver bullion imports in 2023
Source: Indian Ministry of Commerce, Metals Focus

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 Chapter 9: Appendices World Silver Survey 2024

Appendix 27 - Selected Silver Powder Trade Flows in 2023

2Moz

5Moz

2Moz Poland 12Moz

Czech Republic 3Moz 14Moz

France
South Korea
USA Japan
China
7Moz 75Moz
2Moz 10Moz
Taiwan
Mexico 2Moz

3Moz
Thailand
Malaysia 5Moz
Singapore

1Moz

2Moz

NB: Figures stated represent reported gross volumes of material shipped

Source: Various, Metals Focus

Appendix 28 - Value of Selected US Silver Jewelry Imports in 2023

Italy
USA $233M Turkey
China
$40M India
$39M Israel $193M
$30M
Hong Kong
Mexico $339M
$29M
Thailand
$536M
$27M Indonesia

NB: Imports shown represent around 92% of the total value of US silver jewelry imports in 2023
Source: Various

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 World Silver Survey 2024

Appendix 29 - Selected Italian Silver Jewelry Exports in 2023

496koz
527koz
UK Germany
Poland
1.6Moz
Switzerland
636koz
USA 772koz France Turkey
492koz Italy
India
UAE
1.2Moz Hong Kong
Mexico
6.0Moz
447koz
596koz
Panama
465koz
1.4Moz
Brazil 1.1Moz

NB: In gross weight terms, excluding re-exports. Shipments shown account for 66% of total Italian silver jewelry exports in 2023.
Source: Metals Focus, S&P Global

Appendix 30 - German Silver Jewelry Imports

Moz
16

14

12

10

0
2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
Thailand Others

NB: In gross weight terms. Source: Metals Focus, S&P Global

87
 World Silver Survey 2024 Notes & Definitions

Notes & Definitions

Notes

Throughout the tables, totals may not add up due to independent rounding.

What one country reports as an export to another may be different to the imports reported by the receiving country for a variety of
reasons, including conflicting rules of origin, classifications and timing. As a result, similar flows on different maps and/or tables may not
be reciprocal due to reporting variations. The tonnage figures shown are fine weights calculated by Metals Focus from the data provided
by each origin for exports and by each destination for imports.

Units

Troy ounce (oz) One troy ounce - 31.103 grams

Ton (t) One metric ton - 1,000 kilograms (kg) or 32,151 troy ounces
Grade (g/t) Grams per metric ton of rock
Dollar ($) US dollar unless otherwise stated

Definitions

Fabrication Captured in the country where the first transformation of silver bullion or grain into
semi-finished and/or finished products takes place (such as silver nitrate or silver oxide).

Consumption The sum of domestic jewelry fabrication plus imports, less exports, adjusted for changes in
trade stocks.

Recycling Covers the recovery of silver from fabricated products, including unused trade stocks. Excludes
scrap generated during manufacturing (known as production or process scrap). The recycling is
captured in the country where the scrap is generated, which may differ from where it is refined. The
one exception to this is ethylene oxide, where the recycling of silver is measured at the point where
it is recovered.

Mineral Resources A concentration of material in, or on, the earth’s crust of such grade or quantity where there is
a reasonable prospect for economic extraction.

Mineral Reserves The economically mineable part of a measured or indicated mineral resource demonstrated by at
least a preliminary feasibility study.

By-Product Costs Revenue generated from additional metals produced at a mine alongside the primary metal. This
revenue is subtracted from costs as a by-product credit.

Total Cash Cost Includes all direct and indirect mine site cash costs related directly to the physical activities of
producing metals, including mining, ore processing on-site general and administrative costs,
third-party refining expenses, royalties and production taxes, net of by-product revenues.

Total Production Cost Total cash costs, plus depreciation, amortization and reclamation and closure cost obligations
relating to each operating unit.

All-In Sustaining Cost The sum of total cash costs plus community costs, sustaining capital expenses, corporate,
general and administrative expenses (net of stock option expenses) and exploration expenses.

88
 THE SILVER INSTITUTE
World Silver

World Silver Survey 2024

1400 I Street, NW, Suite 550
Washington, D.C. 20005

Tel: +1-202-835-0185
Survey 2024
Email: info@silverinstitute.org
silverinstitute.org

The Silver Institute/ Metals Focus