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Silver lining for

Cinderella metal

G old’s poor relation appears ready for another restructuring. moz and 40 moz,” it reported.
On the supply side, the Institute expected mine production to
Silver has often been labelled the Cinderella precious
metal over the past 20 years but with online investors eager close 2021 6% up year-on-year to 829 moz.
to promote and industrial demand on the up, it could become “This recovery is largely the result of most mines being able to
belle of the ball. operate at full production rates throughout the year following
Spot silver prices are at their highest since early 2013 and enforced stoppages in 2020 due to the pandemic,” it said.
have held above $US20/oz since May 2020, the longest period “Those countries where output was most heavily impacted last
in a decade with the year-on-year average expected to be year, such as Peru, Mexico and Bolivia, will have the biggest
$US25.40/oz, the highest since 2012. increases.”
The Silver Institute said in its November market review that With other metals prices also improving, profitability in the
with all major segments expected to grow in coming months, sector is on the increase.
silver demand was expected to reach 1,000 moz for the first “Average margins in the industry are currently at their highest
time since 2015. since 2012 and only 5% of global primary silver mines were
The demand is being fuelled by both investors and industrial operating with costs above the silver price in the first half of
markets. Silver started 2021 as the darling of social media the year.”
forums with online investors hunting in packs, promoting silver
in much the same way as they had done Gamestop stock
previously. ABC adds silver
The Silver Institute said this social media demand had sparked
accreditation
investor interest at the beginning of the year, paving the way for
other investment classes.
“Growth began with the social media buying frenzy before
spreading to more traditional silver investors,” it said in the
ustralasia’s largest silver refiner, ABC Refinery, has
November market review. “The strength will be driven by the
Areceived accreditation from the US-based CME Group for
US and India. Indian demand reflects improved sentiment
its silver bars.
towards the silver price and a recovering economy. Physical
investment in India is forecast to surge almost three-fold this The stamp of approval means ABC Refinery silver products
year, having collapsed in 2020. will be added to the COMEX good delivery list of brands used
to physically settle against the SI gold futures contract in New
“Building on solid gains last year, US coin and bar demand is
York.
expected to surpass 100 moz for the first time since 2015.
ABC Refinery currently refines over 85% of all primary silver
“[Overall] physical investment in 2021 is on course to increase
in Australia, with capacity to refine in excess of 800 tpa. The
by 32%, or 64 moz, year-on-year to a six-year high of 263 moz.”
refinery is part of Pallion Group.
In the industrial sector, demand is beginning to change the
Pallion chief commercial officer David Woodford said the CME
narrative for silver with potential for it to be basketed in the
Group accreditation was further recognition of ABC Refinery’s
clean energy metals suite.
silver output to the world market.
“The recovery in silver industrial demand from the pandemic
“As Australasia’s largest silver refiner, ABC Refinery is proud
will see this segment achieve a new high of 524 moz,” the Silver
to have achieved this exclusive international accreditation,” he
Institute said. “We estimate that photovoltaic demand will rise
said.
by 13% to over 110 moz, a new high and highlighting silver’s
key role in the green economy. This will also underpin much of The accreditation complements ABC Refinery’s dual
the forecast 10% gain in electrical/electronics offtake. Brazing accreditation status of Good Delivery silver with the London
alloy and solder demand is set to improve by 10% in 2021, Bullion Market Association. ABC Refinery is the exclusive
helped by a recovery in housing and construction, although manufacturer of ABC Bullion branded products.
this will still fall short of pre-pandemic levels.” COMEX silver futures represent the world’s leading futures
In the jewellery space, the Institute expects a rebound from contract for silver prices and trading. The contract offers
2020’s depressed numbers based on economic recovery. superior liquidity to any other silver market, trading upwards
of 500 moz daily.
“Silver jewellery and silverware fabrication are expected to
partially recover…rising by 18% and 25% respectively, to 173

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