Silver demand outstrips supply

Demand for silver in 1991 outstripped supply for the second consecutive year, and forecasts for 1992 indicate further widening of this gap, reports The Silver Institute of Washington, D.C., in its World Silver Survey 1992.

Demand exceeded supply by about 9%, or 46.2 million oz., last year compared to a deficit of 7.3% in 1990. Projected for 1992 is a deficit of 10.6%. Low silver prices the past few years have resulted in mine closings and less incentive to recover the precious metal from scrap. Supply declined in each of the last two years; demand rose strongly in 1992 and was stable in 1991. The survey reports that global demand last year grew in the jewelry, sterlingware and photographic sectors. Photography remains the largest single consumer of silver.

Mexico continues to be the top silver producer. Its output of 62.7 million oz. in 1991 accounted for 14.5% of the world total. Mexican silver output is forecast to rise to 67.3 million oz. this year.

Second in silver production in 1991 was the U.S. with 61 million oz., followed by Peru with 56.6 million oz., the Commonwealth of Independent States (the former Soviet Union) with 44.4 million oz., Canada with 39.9 million oz. and Australia with 37 million oz.