LONDON: Global demand for silver will rise to 1.025 billion ounces in 2021, its highest in eight years, as investors and industry ramp up purchases, the Silver Institute said on Wednesday, predicting that prices would rise.
The coronavirus outbreak triggered a rush among investors to stockpile silver, which like gold is traditionally seen as a safe place to store money.
That impetus will continue, the institute said, predicting purchases of bars and coins would rise to a six-year high of 257 million ounces in 2021.
It did not give a forecast for exchange traded funds (ETFs) storing silver bars for larger investors, but these have grown strongly so far this year, helping push prices to an eight year high of $30.03 an ounce on Feb. 1.
Silver is also used in industries such as electronics and solar panels, and demand will rise as the pandemic is brought under control and the global economy rebounds, the institute said.
Industrial demand will rise 9 percent from 2020 to a four-year high of 510 million ounces, it said.
Demand for silver for jewellery will rise to 174 million ounces but remain below levels seen before the pandemic.
On the supply side, mine production should rise to 866 million ounces this year, the most since 2016, as disruption caused by the pandemic recedes, and recycled supply will increase for a fifth year, the institute said.
The market will be slightly oversupplied, its sixth consecutive annual surplus, the institute said. It calculates its supply-demand balance without counting ETFs.
"The outlook for the silver price in 2021 remains exceptionally encouraging, with the annual average price projected to rise by 46 percent to ... $30," it said in a statement.
"Given silver's smaller market and the increased price volatility this can generate, we expect silver to comfortably outperform gold this year."
The Silver Institute prepares its reports with help from Metals Focus, a precious metals consultancy.
Silver will outshine gold as demand hits 8-year high
https://arab.news/gp4pj
Silver will outshine gold as demand hits 8-year high
- Silver is also used in industries such as electronics and solar panels
- Industrial demand will rise 9 percent from 2020 to a four-year high of 510 million ounces
Free trade negotiations between GCC, India mark new phase of partnership, says sec-gen
RIYADH: The Gulf Cooperation Council’s secretary-general affirmed that the negotiations for a free trade agreement between the GCC and India, and the signing of the joint statement, represents a new phase of strategic partnership.
Jasem Mohamed Al-Budaiwi said that this contributes to enhancing close cooperation and strengthening economic and trade ties, according to the Saudi Press Agency.
This came during the signing ceremony of the joint statement on launching the free trade agreement negotiations between the Al-Budaiwi and India’s Minister of Commerce and Industry, Piyush Goyal, which took place in New Delhi, on Tuesday.
During the signing ceremony, Al-Budaiwi said that the Terms of Reference, signed on Feb. 5, provide a comprehensive and clear framework for these negotiations. The two nations agreed to discuss enhancing cooperation in vital strategic areas, including trade in goods, customs procedures, and services.
Additionally, the framework covers Sanitary and Phytosanitary measures, intellectual property rights, cooperation on Micro, Small, and Medium Enterprises, along with other topics of mutual interest. This reflects the comprehensive nature of the agreement and its ability to keep pace with the future economy.
Al-Budaiwi expressed hope that these negotiations would lead to a comprehensive and ambitious free trade agreement that works to remove customs and non-customs barriers, enhance the flow of quality investments in both directions, and achieve further liberalization in trade and investment cooperation between the GCC and India for mutual benefit.
This would provide a stimulating economic environment and an investment climate that opens broad horizons for the business sector, supports supply chains, and accelerates the pace of economic growth in line with the ambitious developmental visions of the GCC states.
The top official affirmed the full readiness of the General Secretariat to host the first round of negotiations at its headquarters in Riyadh during the second half of this year.
The two sides held a meeting during which they reviewed the existing cooperation relations between the GCC and India and discussed ways to develop and elevate them to broader horizons, serving mutual interests and enhancing opportunities for strategic partnership between the two sides, particularly in the economic, investment, and trade fields.
They praised the role undertaken by the negotiating teams from both sides, appreciating the efforts contributing to reaching a comprehensive agreement that enhances economic integration and supports the smooth flow of trade between the two nations.
