Strong Investor Interest and Industrial Usage Lead to Sturdy Silver Demand in 2014

(Washington, D.C. – July 17, 2014) – Investor and industrial consumption of silver has advanced at a healthy pace in 2014, reflected in the silver price increasing 5 percent as of July 15 from the beginning of the year.

Globally, silver bullion coin sales are up 4.5 percent through the 1st quarter of 2014, according to precious metals consultancy Thomson Reuters GFMS. U.S. Mint sales of American Eagle Silver Bullion coins maintained near record level sales, totaling 24.1 Moz for the first six months of 2014, just shy of the 25.0 Moz sold in the first half of 2013, threatening to overtake the record sales of 42.7 million American Eagle coins acquired by investors last year. Other silver investment products, such as silver bar consumption, appear to be easing so far this year after a strong showing in 2013.

Industrial demand for silver in critical sectors, such as ethylene oxide production, has increased significantly in the first half of the year and is expected to increase 23 percent this year to 8.0 Moz, according to Thomson Reuters GFMS. Ethylene oxide is a vital building block chemical, critical to production of detergents, solvents, plastics and a broad range of organic chemicals, and is an example of the unmatched importance of silver in industry.

These two categories, investment and industrial demand, are important to the strength of the silver market and last year accounted for a combined 77 percent of total silver demand.