It may reduce the amount of disposable income available for spending in the jewelry sector. The only caveat is that the economic rundown caused by the coronavirus may slow down growth. The price for silver in 2020 is expected to reach a six-year high of $18 (representing a 13% increase). This rate is expected to be replicated in 2020 due to the improvement of pricing options for consumers. The demand for silver in production of jewelry had a steady rise from 2016 to 2018 at a growth rate of 4.83%.

The forecast for 2020 to 2025 shows that the value will increase to $480.5 billion due increased jewelry innovations as well as additional disposable income. In 2018, the global jewelry market size was valued at $278.5 billion. The decline was attributed to fluctuations of the price of silver in the key markets such as India. The demand for silver in making jewelry first declined from 2014 to 2017 before picking up in 2018. The turnaround of Mexican mines is expected to further increase silver production in the year 2020/2021. Supply over the same period shows that production has increased by 88 million ounces or 9.63%.

According to the Silver Institute mine production of silver rose from 717.3 Moz in 2009 to 855.7 Moz in 2018 (an increase of 19.29%). Production of silver has also risen exponentially since 2009 to 2018. Owing to the increased prospects of a rise in silver production into 2020, the share price rose by 14.57% to trade at $6.29 on 18th March 2020. Across the board, there was an 80% increase in the recorded full-year earnings of Sibanye-Stillwater mining company in 2019 as compared to 2018.Īfter recording a net loss of $39.9 million in its Q4 earnings, First Majestic Silver Corp ( AG) stock went down by 43% in the beginning of March 2020. The Y/Y growth is however, expected to be offset by decreased production in Antamina and Constancia. Other mines such as Peñasquito are scheduled for a higher silver production into 2020. Endeavour Silver's production has been hampered by the shutdown of the El Cubo mines last year and the high operating costs at the El Compass mine. Of the 10 mining companies examined in the table above, only four are scheduled to reduce their silver production into 2020. This amount represents an increase of 10.5% from the silver mined in 2019 that was 146Moz. Mining estimates from Mexico suggest that a total of 161 Million ounces (Moz) of silver will be produced from 10 Mexican mines in the year. The output of silver in major Mexican mines is scheduled for a liftoff in 2020. The price of silver futures are expected to rise higher due to increased demand of silver vis a vis supply, increased use of silver in industrial and jewelry application as well heightened bio-medical investments.

In this article, I will explain why it is prudent to buy SLV stock and prepare for a major bull party. Arguably, the spread of the coronavirus has slowed down investments and pushed down manufacturing processes to record lows. The precious metal sold below $13.70 from mid-March, 2020.

This trend portrayed the low price of silver contracts. The share price of iShare Silver Trust ETF ( NYSEARCA: SLV) decreased by 1.96% on 17th March 2020 to trade at $11.77.

Ishare silver trust