Silver demand hits record high

Silver demand hit record highs last year with jewelry, coins and photovoltaic sectors, helping to boost sales of the precious metal

Experts also predict rosy silver prices. Last week, analysts attributed the growth to the strongest decline in mine productivity in recent years and an increase in industrial demand.

Silver prices rose 5.4% last week, up 15.2% in April. This was the largest monthly gain in silver prices since August 2013.

Only about 30 percent of world production comes from primary silver mines, less than the by-product of zinc and lead mines, where a number of mine closures are expected in the near future. Most of the use of silver comes from industrial applications such as electronics alloys, photovoltaic cells.

Silver demand for photovoltaic applications rose 23% in 2015 to 77.6 Moz, amid strong growth in Chinese solar panel installations. Electrical and electronic use fell 10% last year to 246.7 million ounces, due to slower economic growth in developing countries and continued weakness in computer sales.

On the supply side, the study found that silver mining growth slowed to 2% last year, reaching a record 886.7 Moz. Overall, the market recorded its third consecutive year of deficit, which was 60% more than 2014, according to the latest World Silver Survey, published in collaboration with the Silver Institute. “The overall decline in mine production last year is expected to continue,” the report said.