Investment demand for silver coins and medals also rose by over a third, with silver bar purchases doubling to a record 3,956 tons.
However, on the supply side, mine production steadily increased for the 11th successive year. Although, the higher supply was slightly offset by a 24% fall in the flow of scrap silver, which typically makes up a quarter of market supply. [Time is Right for Bearish Silver ETF]
Looking ahead, Leyland warns that a strengthening U.S. economy will pull investors away from precious metals as more people turn to riskier investments. [Buoyant U.S. Data Could Hamper Gold ETFs]
“With a stronger US dollar and improved economic outlook we see sentiment towards precious metals worsening,” Leyland added. “Our base case is to see more investor interest leaving the sector.”
For more information on silver, visit our silver category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of GLD and SLV.