(Kitco News) – Record physical demand for silver in 2022 might not be enough to drive prices materially higher this year as the precious metal sector continues to suffer from rising expectations that central banks will aggressively tighten their monetary policies to fight the rising inflation threat.
Wednesday, the Silver Institute published a report saying that it expects physical silver demand to reach a record high of 1.112 billion ounces this year, an increase of 8% from solid 2021 levels.
The report said that silver demand is expected to be broad-based. However, many analysts continue to watch silver’s industrial component as the world develops green energy.
“Ongoing improvements in the global economy will give silver industrial applications an additional boost, mitigating near-term headwinds from supply chain bottlenecks and the challenges in certain regions from the ongoing COVID pandemic,” the silver institute said.