A new report released Tuesday by the Metals Focus, commissioned by The Silver Institute, reveals that the United States, India, Germany, and Australia collectively account for nearly 80% of global demand for silver bars and coins. It highlights physical investment as a structurally crucial yet the most volatile component of global silver demand, which hit a record high of 337.6 million ounces (Moz) in 2022.
Analysts stated that rising geopolitical tensions, growing government debt, and an increasing investor perception that silver is undervalued relative to gold have collectively driven silver prices up by 34% this year. This performance outperforms gold (up 28%) and Bitcoin (up 18% year-to-date). Despite significant gains, silver prices are hovering near key resistance levels; a sustained break above $39 per ounce could trigger a true price discovery phase.
Nate Miller, Vice President of Product Development at Amplify ETFs, provided a technical perspective, noting that with gold holding steady at $3,400, a normalization of the gold-to-silver ratio would imply a silver price between $50 and $52 per ounce, suggesting substantial upside potential. The ratio has retreated from its April high above 104 to its current level of 88, yet it remains well above its historical average of around 65.
United States: The U.S. firmly retains its position as the world’s largest market for physical silver investment, with demand far exceeding that of other countries. Report data shows a staggering cumulative purchase of 1.5 billion ounces by U.S. retail investors between 2010 and 2024. The value of U.S. physical silver investment averages about 70% of that of gold investments, compared to just 6% in the rest of the world. Furthermore, Individual Retirement Accounts (IRAs) remain a significant component of U.S. silver investment.
India: India is consistently the world’s second-largest silver investment market, though Metals Focus predicts it will reclaim the top spot in 2025 (a position it held in 2018 and 2019). Cumulative demand for silver bars and coins in India from 2010 to 2024 reached 840 million ounces. Even at current record-high prices in rupee terms, Indian investors remain reluctant to sell their holdings. Excluding a special demand spike in 2022, last year’s demand was the highest since 2015. Analysts forecast a slight dip this year due to profit-taking, but the annual total is expected to remain historically high.
Germany: Germany has long been the third-largest retail market for silver bars and coins, with bullion coins dominating, accounting for roughly 80% of sales. Demand in Germany has been particularly volatile: annual retail purchases averaged a modest 24.6 Moz (764 tonnes) between 2012-2018, before surging to an average of 48.5 Moz (1,510 tonnes) during 2020-2022, driven by the COVID-19 pandemic and the war in Ukraine. Demand was previously boosted by lower tax rates on non-EU silver coins, but the end of this favorable treatment at the end of 2022 led to a sharp decline, with German net silver demand plummeting by 39 Moz since.
Australia: Australia has emerged in recent years as the world’s fourth-largest market for physical silver investment. Demand for silver coins and bars surged from just under 3.5 Moz in 2019 to a record high of 20.7 Moz in 2022. Analysts attribute this standout growth to two key factors: the increasing popularity of including silver in retirement accounts and a favorable tax structure for physical silver investment products.
