Global demand for silver exceeded supply for the fourth consecutive year in 1993 and the trend is expected to continue in 1994, The Silver Institute predicts.
In its World Silver Survey, 1994, the Washington. D.C.-based firm says fabrication demand exceeded supply by 207.5 million oz. in 1993, more than doubling the shortfall recorded in 1992.
Inventories, which were built up in the 1980s, were drawn down sharply by demand to make up for the lack of refined silver entering the market. For 1994, demand is projected to exceed supply by 248.4 million oz. Last year, demand was up 14.4% to 678.7 million oz. It increased sharply in several countries — in particular India, where jewelry and decorative objects are much sought after.
Increased usage was reported in 1993 in the manufacture of jewelry, silverware and coinage.
Since 1989, silver use in photography, the largest use category for many years, grew 1.3%, while use in jewelry and silverware has expanded an average of 27.5% annually. In 1993, jewelry and silverware surpassed photography as the largest use category, representing 33% of total demand.
On the supply side, total new silver supply fell 6.1% last year to 471.2 million oz., the lowest level since 1986.
Mine production was off sharply in the major producing nations. In part, the decline reflects the lower prices for silver-mining byproduct metals such as copper, lead and zinc; many of these mines remain closed.
Recovery of silver from secondary sources, including scrap and old coinage, increased 1.2% to 140.6 million oz. in 1993.
Mexico was the top silver-producing nation in 1993, followed by the U.S., Peru and Canada.
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