Silver is trading near $65 an ounce in the United States this month, more than double its year ago level, keeping investor attention on the physical demand side of the market. Data compiled by the Silver Institute shows how volatile that demand has been in recent years.

Global silver jewelry fabrication fell 13 percent in 2023 to 203.1 million ounces, with losses concentrated in India after that country's demand had hit a record high the year before. Excluding India, the worldwide decline was a more modest 3 percent, driven mainly by weaker jewelry consumption in the United States and Europe tied to cost of living pressures and retailer destocking.

Silverware fabrication told a similar story, dropping 25 percent in 2023 to 55.2 million ounces after an unusually strong 2022 base. That prior year had set records on both fronts, with jewelry fabrication up 29 percent to 234.1 million ounces and silverware output surging 80 percent to 73.5 million ounces, gains the Institute attributed almost entirely to a rebound in Indian household incomes and employment following the pandemic.

The swings underscore how sensitive silver fabrication demand remains to price levels and regional economic conditions, even as investment demand and industrial applications such as solar panels continue to expand.

Source: The Silver Institute - https://silverinstitute.org/silver-demand-3/