Silver’s use in photovoltaics for solar energy is projected to rise in 2016 and surpass the previous peak of 75.8 Moz (million ounces) set in 2011, as global solar panel installations are expected to grow at a high single-digit pace. Moreover, silver’s use in this application may account for more than 13 percent of total silver industrial demand in 2016, up from 1.4 percent a decade ago.

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Silver demand from ethylene oxide (EO) producers is expected to jump to over 10 Moz this year, a more than 25 percent increase over 2015. Ethylene oxide is critical in the production of plastics, solvents and detergents. This growth comes off a very robust 2015, when demand

grew by well over 40 percent. The bulk of demand is expected to continue to come from new EO plants and expansions at existing ones located in China. China is expected to account for an estimated 80 percent of silver requirements for new EO capacity in 2016.

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Coin demand is expected to be robust once again in 2016, following a record 130 Moz of demand last year. Demand will remain elevated this year as investors take advantage of relatively lower metal prices in the first few months of the year. Increased interest in safe haven assets, as already seen in the first few weeks of the year, will also be positive for physical silver investment demand. In 2015, coin demand made up an estimated 12 percent of total physical demand.

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