Silver demand for jewellery production is expected to fall by 10 per cent this year as consumption stabilises in key markets after the pandemic, according to the Silver Institute.

After hitting a record high in 2022, demand for silver jewellery in India is likely to ease back to more regular levels, the trade body noted. In the US, consumption is poised for a modest dip due to economic concerns and normalised spend on travel. Other markets are forecast to experience slight increases in demand.

In its preliminary review for 2022 released last November, the Silver Institute said it expected silver jewellery demand to reach a record high of 235 million ounces in 2022, a 29 per cent hike over 2021. Growth was attributed mainly to robust demand from India, fuelled partly by strong inventory replenishment ahead of festive and wedding seasons. 

India has been the world’s largest manufacturer of silver jewellery since 2014, when it overtook China on the production tally.

Overall silver demand in 2023 is expected to increase by 2.6 per cent to 550 million ounces this year, with industrial sectors driving growth. 

The average price of silver from January 1 to February 7 this year was over 8 per cent higher than the full-year price average for 2022, the Silver Institute noted.