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Summary
The global silver market demonstrated remarkable trends commencing from 2020. Despite the volatility observed in global production and demand patterns, the market showed signs of resilience and growth. In 2020, despite a decrease in production by countries such as Mexico, China, and Peru, the market value was significant, indicating a strong performance in value terms. Silver's industrial applications, particularly in electronics, remained a dominant force, driving substantial demand. The year also marked a peak in silver prices, reflecting an upward trend amidst challenging economic conditions.
France, while not a major producer, stood as Europe's fourth-largest silver recycler, contributing significantly to the secondary silver supply. International trade data from France indicated a considerable deficit, with imports far exceeding exports. The French market's focus was primarily on industrial demand, which estimated to account for over half of the silver demand in the country in 2020. In summary, the silver market's strength lay in its industrial applications and investment appeal, marked by high demand, recycling efforts, and fluctuations in production and prices.
French Silver Market Demand Trends
The French silver market displays diverse trends where several sectors utilize silver due to its unique properties. Silver's high conductivity makes it a material of choice for various industrial applications, particularly in the electronics industry, which constitutes a significant demand for silver in France. Silver is not just an industrial metal but also a precious metal that holds investment appeal. France, despite being a relatively small producer, is a noticeable consumer of silver. In the country, the industrial sector alone accounted for approximately 49.2%.
Integrating silver into the manufacture of electronic components is particularly critical, reflecting its importance in the country's technological advancement and innovation within the electronics industry. The demand for silver in France also has a strong component tied to physical investment. This is because silver is considered a safe-haven asset, much like gold, but with the added advantage of being non-taxable. It's noteworthy that in 2020, the bottom did fall out a bit due to economic downturns, yet predictions by The Silver Institute were optimistic, projecting that levels in 2021 would surpass those.
In terms of actual figures, the global silver market leaned towards a robust valuation, estimated at around USD 193.3 billion in 2020, with an anticipated growth to reach USD 362.1 billion by 2027. For comparison, the French market, which is a subset of this global pictogram, presents an industry-specific demand with a valuation of between USD 24 and 25 billion as of 2021, when calculated using the average silver price and accounting for the national consumption rate.
Another aspect contributing to the demand for silver within France is centered on jewelry, with France ranking as Europe's second-largest jewelry producer behind Italy. The production and distribution of silver jewelry, despite facing a slow decline over the years, still holds a considerable segment of the silver demand in the country. Recycling silver is another vital component of France's silver market. Though mining activities ceased back with the closure of the Salsigne mine, recycling efforts have positioned France as one of Europe's top silver recyclers. In the context of investments, the French market has evolved, particularly in its legal and tax aspects.
Legislation governing silver and other precious metals got updated with various measures, including an increase in taxation on precious metals sales above a certain threshold. On the demand side, trends reflect both consistent growth and the challenges of economic upheavals.
Key Participants in the Global Silver Market
The silver market comprises a complex tapestry of activities from mining and refining to recycling, investment, and manufacturing. Below we take a deeper look at some of the most prominent players operating within various segments of the silver market, shaping its landscape on a global stage.
Mining Excellence: Fresnillo Plc
Leading the charge in the silver mining and quarrying sector is Fresnillo Plc. Recognized for its substantial operations, Fresnillo stands tall as a notable entity whose mining endeavors have significant implications for the overall supply of this precious metal worldwide. The company's success is derived from its strategic site locations and a steadfast commitment to extracting silver efficiently and responsibly.
Refining Prowess: Heimerle & Meule Group
In the realm of silver processing, the Heimerle & Meule Group has established itself as a powerhouse. As part of Cookson Precious Metals, they exhibit mastery in turning raw silver into high-grade products. Their modern refining techniques ensure purity and quality, catering to the stringent expectations of various industries reliant on silver, including electronics and jewelry.
Recycling and Recovery: Gold by Gold and Aureus
The importance of silver recycling cannot be overstated, and companies like Gold by Gold and Aureus are crucial to the secondary silver market. Through recycling and recovery processes, these enterprises provide an essential service to the market, ensuring that silver remains a sustainable resource. By repurposing silver from various sources, these companies play a vital role in balancing supply with the ever-growing demand.
Investment Services: Or.fr and BullionVault
The investment dimension of silver is catered to by firms such as Or.fr and BullionVault. As silver is considered a safe-haven asset, these companies offer services that enable individuals and entities to invest in the metal with confidence and assurance. Through their platforms, investors are provided with various options to secure silver in physical form or through paper investments, facilitating the continued popularity and financial significance of silver in the investment arena.
Each of these companies contributes uniquely to the global silver market, ensuring the flow of silver from its raw form deep within the earth, through to the intricacies of financial investment portfolios. Their collective efforts across mining, processing, recycling, and investment spheres solidify the foundational structure of the silver market, enabling it to thrive and adapt to the complex demands of a modern economy.
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- Last update : 01/03/2022
Summary and extracts
1 Market overview
1.1 Definition and scope of study
Silver is a chemical element (atomic number 47, atomic weight 107.87, symbol Ag ) that occurs in nature both in its native state and as a mineral. This lustrous white metal is an excellent conductor of electricity and heat, and is used in combination with other metals for : coinage, the manufacture of many items of laboratory equipment, electrical conductors and as a catalyst; many of its compounds have uses in photography and medicine...
The global silver market was worth $193.3 billion in 2020, and is expected to reach a value of $362.1 billion in 2027, with a growth rate (CAGR) of 9% over the period. Silver accounted for over 84.0% of global precious metals market volume in 2019. For a long time, the silver market has been regarded as a safe-haven asset with little regard for the French, but destined for a brighter future in the near future. In February 2021, for example, silver prices soared to a level not seen since 2013, confirming their upward trend throughout 2020.
This increase in value is due in part to the fact that industrial demand, which is unprecedented and likely to continue to explode in the coming years, is coming up against extraction that is becoming increasingly difficult and costly as the most accessible deposits have already been mined. Silver is therefore forecast to be one of the alternative investment solutions in 2021, which remains fairly reliable and has the advantage of being a non-taxable asset, unlike gold, which has already been subject to confiscation measures. This is mainly because silver is more difficult to mobilize, due to the lower value of silver coins, for example. European production accounts for just 3.5% of world production, which is concentrated in Mexico, Peru and China.
1.2 The global silver market: current situation and main characteristics
Several countries share the world's silver reserves, starting with Peru, which boasts the largest mining potential with ***,*** tonnes of unextracted silver, followed by Australia and Poland.
Countries with the largest silver reserves World, ****, in thousands of tonnes Source: ****
It is noticeable that countries with high mining potential do not exploit their ...
1.3 The French market
According to the Silver Institute, **.*% of French silver demand was for industry in ****. Assuming that this proportion is constant, it is possible to obtain an estimate of the French silver market by first calculating the industrial silver market in France, which corresponds to the product of demand and the average silver ...
1.4 International trade
The United Nations database for international trade includes several codes relating to silver. The most important in terms of total quantities imported and exported by France are shown in the following graph. The chart shows that France has a very substantial trade deficit in silver. Indeed, the country's silver exports are ...
2 Demand analysis
2.1 The main outlets for silver
The Silver Institute's publications provide a breakdown of silver demand by sector, both worldwide and in France. In both cases, most of this demand comes from industry. However, physical investment accounts for a larger share of French demand than of global demand. Jewelry and silver account for a smaller share of ...
2.2 Industrial silver applications
Silver's physical characteristics make it the material of choice for a wide variety of industrial uses. The main areas of application for silver are as follows.
The electronics industry exploits silver's high conductivity (***) As silver is relatively resistant to the chemical activity of bases, mineral acids and alkaline salts, it can ...
2.3 Integrating silver into the manufacture of electronic components
Most silver used in French industry is used in the electrical and electronics sectors, notably in the manufacture of electrical contacts and catalysts. The French electronics sector therefore plays a major role in the use of silver in France. Indeed, the material's ductility (***), conductivity and malleability are characteristics that are particularly ...
3 Market structure
3.1 Production
Today, mining is the principal means of meeting the world's demand for silver. Indeed, according to the following graph, over **% of the world's silver comes from mining production, ahead of recycling, which accounts for over **%.
Sources of world silver supply World, ****, in millions of ounces Source: ****
The following graph shows the ...
3.2 Recycling money
The supply of secondary silver is an important determinant of the silver market. Globally, the recovery of precious metals comes from the resale and remelting of jewelry, the recycling of electrical and electronic equipment, the recovery of dental crowns, and so on.
Although France has not produced silver since the closure ...
3.3 Jewelry production and distribution
Production
As we saw earlier, jewelry accounts for a significant proportion of silver demand in France. In fact, France is Europe's second-largest jewelry producer, having manufactured **.*% of European jewelry in ****, behind Italy.
Jewelry manufacturing in Europe Europe, ****, % (***) Source: ****
However, French jewelry manufacturing is experiencing a slowly declining trend, with a **% drop ...
4 Offer analysis
4.1 Silver price trends
The following graph shows the evolution of the average annual silver price. The price of an ounce of silver depends not only on market supply and demand, but also on economic conditions.the price of silver has risen sharply since the turn of the century, peaking in **** at over $** per ounce, ...
4.2 Jewellery prices
The following chart shows the average price in different categories of so-called precious jewelry over the period January **** - December ****. While ***% gold is by far the most expensive jewelry category, with an average price of *** euros per piece that year, ***% gold jewelry averages *** euros.
Gold-plated and silver jewelry are the most ...
4.3 Selling money online
Numerous websites offer online money buying and selling. These sites offer the following forms of money:
French coins Monnaie de Paris Modern coins coins minted in Australia (***) coins minted in New Zealand minted in Canada Ingots Large volumes of silver (***)
The following table lists the prices of two French silver sales ...
5 Regulations
5.1 Legislation governing silver and precious metals
The mining code was created in ****, taking over from the law of ****. Ordinance ****-** is currently in force. This code requires extractors to hold a mining title, which recognizes the holder's property rights. Several permits are required, from research to extraction, and a special procedure is needed to carry out extraction ...
6 Positioning the players
6.1 Segmentation
- Fresnillo
- Cookson Métaux précieux (Heimerle & Meule Group)
- Gold by Gold
- Aureus
- BullionVault Ltd
- Or.fr
List of charts
- Countries with the largest reserves of silver mines
- World silver production
- Main silver-producing countries
- Global silver demand
- Breakdown of world silver demand
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