Silver demand surges in India this year, proves catalyst for global growth

By

Isabelle Crossley

Published
Nov 21, 2022

An unprecedented rebound in demand for silver jewellery in India is driving double digit growth in the global silver market, which is set to reach a record high this year. Easing prices and the upcoming winter wedding season should help this trend to continue. 

A wide array of demands including industrial demand, jewellery and silverware demand, and physical investment, have led to a forecasted total global silver demand of 1.21 billion ounces in 2022, according to key fundings reported at the Silver Institute’s Interim Silver Market Review. According to a report by Metals Focus’ managing director Philip Newman and Mine Supply’s director Adam Webb, global silver demand is set to increase by 16% year-on-year in 2022, the Gem and Jewellery Export Promotion Council reported on its website. 
 
Global demand for silver jewellery is expected to increase by 29% and demand for silverware is expected to increase by 72% this calendar year. Newman and Webb named Indian demand as the main catalyst for this international boom in the industry. 

Factors contributing to robust Indian demand for silver jewellery include jewellery stores replenishing their inventory for the winter wedding and festive seasons and the fact that 2021 saw heavy stock depletion. Metals Focus expects silver prices to ease by around 16% this year, compared to 2021, due to factors including the US Fed’s move to continue lifting interest rates, rising yields, and ongoing dollar strength.