LONDON (Scrap Register): Global physical Silver demand is expected to contract by 3.0% to 963.0Moz this year, a third consecutive decline, according to Silver Institute.
Bar and coin demand willbe the main driver behind the fall contracting another 12.2% to 124.8 Moz in 2018. New physicalcoindemand has remained underpressurethis year, particularly in the United States during the first half of the year, as investors relied on the secondary market witholder dated coins for their investment needs.
Physical bar and coin demand in other regionshas also been disappointing this year, contracting mainly in the single digitsas investors remained on the sidelines awaiting higher price volatility.
Demand for jewelry and silverware is forecast tofall 0.6% to 252.9Moz.The drop is mainly a reflection of soft demand in India and China.
In the case of the former, the disappointing monsoon season did not result in the expected increase in jewelry purchaseswhereas for the latter a generally weakening economic climate is hampering further purchases.
The decline in Thai jewelry fabricationhas slowed this year with continued strong demand from the United States.