Page 25 - Bullion World Volume 5 Issue 05 May 2025

Bullion World | Volume 5 | Issue 05 | May 2025

Key Takeaways: Audience Q&A Highlights:
• Silver Deficit: Over the past four years, the market • Mine permitting reforms are slowly improving.
has experienced a deficit of 679 million ounces— • Deficit may push lightweight jewellery designs and
nearly half of the annual global demand. substitution in industry.
• Industrial Demand Surge: Industrial uses, • Silver’s dual nature (precious + industrial) makes
particularly photovoltaics, now account for 60% of it less reactive to economic shocks compared to
silver demand. Investment demand has decreased gold.
from 24% to 15%. • Additional gold mining may marginally help, but
• Limited Production Capacity: Most silver is mined not enough.
as a by-product of other metals, making it hard to • Long-term solutions lie in unlocking above-ground
scale production. hoards.
• Mine Development Lag: New silver mines face long
permitting cycles—up to 29 years in the U.S.— • Conclusion:
slowing supply expansion. Mr Phillips Baker concluded with a cautionary yet
• Recycling Limitations: While 150–200 million strategic note. As industrial demand continues to
ounces come from recycling annually, this hasn’t grow and supply remains constrained, silver prices
increased meaningfully despite rising prices. are poised to rise. Stakeholders must prepare for
• Above-Ground Reserves: The only realistic source a tighter market, and better utilize tools like the
to bridge the deficit is privately held silver—5.5 World Silver Survey for strategic decision-making.
billion ounces globally. Rising prices may
incentivize some of this stock to re-enter markets.

Session 3

Silver Investment Demand

Mr Chirag Thakkar, Amrapali Gujarat, Mr Amit Vashisht, ICICI Prudential AMC Ltd,
Mr Navneet Damani, Motilal Oswal Financial Services Ltd,
Mr Amit Sajeja, Alpha Alternatives Holdings Pvt Ltd, Mr Johnson Lewis, FinMet Pte Ltd

Mr Johnson Lewis set the stage by emphasizing the evolving nature of silver as a dual-purpose asset—
valued both for its industrial and investment merits. He categorized the discussion across four core
themes: demand drivers, product innovation, regulatory ecosystem, and shifting investor demographics.

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