At the Annual Silver Industry Dinner hosted by the Silver Institute, Johann Wiebe, Senior Analyst in the GFMS team at Thomson Reuters, presented the GFMS / Silver Institute Interim Silver Market Review, which includes provisional silver supply and demand forecasts for 2016.
According to the analyst, the silver market is expected to be in an annual physical deficit of 52.2 Moz in 2016, Silver prices are forecasted to average $17.15/oz for the full calendar year – a 9.4% increase over the 2015 average. Total silver supply is forecast to fall 3% to 1,012.4 Moz in 2016. Total industrial demand for silver is forecast to decline by 1% to 585.1 Moz.
In addition, jewelry fabrication is forecast to drop 8% to 208.5 Moz in 2016. A decline in discretionary spending, thrifting, lower economic growth and a higher silver price have all contributed to the overall decline. North American domestic fabrication is set to reach 28.9 Moz – a decline of 6% year-on-year.
