Even though interest in precious metals has fallen over the past few years, investment demand is still the largest growth sector in the silver market. Yes, it may be hard to believe, but physical silver investment has grown the most since the 2008 financial crisis compared to the other sectors. And while industrial users consume the highest amount of silver in the overall market annually, its total demand has fallen over the past decade.
Furthermore, a new study shows that global PV solar demand will decline by 40% over the next five years. But, I will get to that later in the article. However, I wanted to focus on physical silver investment demand because the alternative media community seems to have this idea that SILVER IS DEAD… IT’S NOT. While it’s true that investment demand has declined significantly from the peak a few years back, it is still much higher than what it was before the 2008 financial crisis.
Interestingly, silver coin bar and coin demand seem to spike the most when prices are falling rather than when they are rising. This was true in 2015 when total global silver coin and bar demand hit a record high of 292 million oz (Moz) as the silver price fell to a low of $15.68 versus 161 Moz in 2012 when the average price was $31.15: