Published on: December 06, 2019
The French word for silver is argent, which also means money. For centuries silver has been used to make coins that were used as currency. Silver is either extracted from the silver mines or obtained as a by-product from lead and zinc mines. The thermal and electrical conductivity of silver makes it an ideal and inexpensive choice for electrical applications. For instance, silver is used to make contacts used in electrical switches. Silver is also used in jewelry, silverware, and mirrors due to attributes such as high luster and reflectivity. Other key properties of silver include high malleability and ductility, which makes it a perfect material for flexible wires, flattened sheets, and other industrial applications.
According to our analysis, the global silver market is expected to witness considerable growth, which is attributable to factors such as advances in exploration, mining, and processing technologies and increasing use of silver in industrial applications. Some of the key trends in the market include growing demand for silver exchange-traded products and increasing investment in physical silver.
The global silver market can be segmented into the following:
Various underlying factors might drive or impede the growth of the global silver market during the forecast period. We have identified the following growth drivers for the market:
In recent years, the advent of new technologies in the silver mining market has enabled the mining corporations to improve their productivity while ensuring worker safety. As sustainable extraction of ores has emerged as a prerequisite for conducting mining operations, mining companies are leveraging machine learning and big data to detect lucrative mineral deposits. Machine learning has the potential to enable mining companies in precisely locating commercially viable mineral deposits in a short time. Thus, such technological advances will drive the growth of the global silver market.
Silver jewelry has emerged as a popular choice among consumers in Thailand and the US as they prefer it over gold jewelry with low caratage. Also, the increasing frequency of self-purchases by the female consumer segment is expected to boost the growth of the global silver market. Thus, factors such as accelerating demand for silver jewelry due to diversity in designs and exceptional finish and lucrative profit margins for vendors are expected to drive the growth of the market.
Silver mining companies are reviewing and actively disposing of underinvested assets to raise funds for technological investment, which would transform their operating model. Also, factors such as the changing technology landscape and geopolitical concerns such as the US tax reforms, and Brexit are encouraging companies in the affected markets to adopt a disciplined approach to portfolio management. The proceeds from divestments are often redeployed in growth areas and go-forward strategies with the potential to generate more shareholder value. Thus, such strategic investment and divestment decisions are expected to accelerate the growth of the global silver market.
The demand for silver from industrial fabrication and photovoltaic cell manufacturing companies is expected to witness considerable growth. Also, the automotive sector uses silver in several applications that include safety features and window defogging and infotainment systems. Silver is also used in other sectors such as LED lighting, water purification, and anti-microbial applications in textiles. Thus, the increasing use of silver in industrial applications will drive the growth of the global silver market.
Meanwhile, the vendors operating in the global silver market face numerous challenges in increasing their sales and improving profitability. The following are some of those challenges:
Over the past decade, silver mine productivity has plummeted due to the decline in labor, capital, and material productivity. During, the same period, the high commodity price environment had encouraged the mining companies to expand their operations and achieve economies of scale. However, the expansion of mining operations has resulted in several operational complexities, such as organizational silos and inadequate functional collaboration within the mining companies. A lack of innovative thinking in the face of factors such as the decline in ore grades has also emerged as a growth-deterrent for the global silver market.
Consumers in urban areas have higher disposable income compared to rural areas. However, urban customers are also more aware and are exposed to various other luxury goods. Increasing consumer spending on the purchase of luxury, designer, and fashionable wearables such as designer apparel, luxury watches, and other luxury accessories can affect the silver purchases.
Silver mining requires a high amount of energy for extraction and processing. This is because it includes a variety of concentration and refining processes to produce pure gold. Due to the high amount of energy being used in the form of fossil fuel and other non-renewable energy, silver mining will have a negative impact on the environment. Many governments are enforcing stringent regulations on mining because the impact of mining on the environment is enormous and can result in erosion, sinkholes, loss of biodiversity, contamination of soil, groundwater, and surface water by the chemicals released from mining processes. Thus, such regulations may affect the productivity of silver mines and impede the growth of the global silver market.
Our reports encompass a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis. In our global silver market report, we have provided a detailed analysis of around 25 vendors, including several prominent players such as Coeur Mining Inc., Fresnillo plc, Industrias Peñoles S.A.B. de C.V., Pan American Silver Corp., and Wheaton Precious Metals.
The following are some of the key developments mentioned in our global silver market report:
Backed with competitive intelligence and benchmarking, our global silver market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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