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Last Updated on April 15, 2024 by Team Experts
Silver bullion is a popular form of physical silver investment, as it allows investors to buy and store the pure silver metal in an easily-transferable form without having to worry about its storage. It is typically sold in the form of coins, bars, and rounds. Silver bullion has been used as a form of currency for centuries and continues to be a popular investment option today
The global silver bullion market size was valued at USD 11.6 billion in 2020 and is projected to reach USD 17.3 billion by 2023, at a CAGR of 8.2% during the forecast period.
Demand for silver bullion has been increasing over the past decade due to several factors such as its cost-effectiveness, portability, and ease of trading. This trend is expected to continue, making silver bullion an attractive investment option for many.
In this article, we will take a look at the size, share, and demand of the silver bullion market and how they could affect the industry’s growth over the next few years.
Size of Silver Bullion Market
It is estimated that by 2023, the global silver bullion market could reach a total value of around $73 trillion USD, thanks in no small part to the steadily increasing value of silver. Many investors now see silver as a safe-haven asset in unpredictable economic times, and as a result, demand for silver has been growing.
The global market for silver bullion could be split into two categories: retail investors who buy coins or bars from dealers or online platforms; and institutional investors who purchase large quantities for their portfolios or other investments.
It is likely that both types of investments will continue to grow in popularity in 2023 due to the low costs associated with them compared to other forms of investments such as stocks or mutual funds.
What’s more, technological advances have allowed investors to purchase quality silver from the comfort of their own homes and taken away the notion of needing to be physically present at a store. Every day, more and more people are becoming familiar with investing in silver bullion–a trend set to continue into 2023 and beyond.
Share of Silver Bullion Market
By 2023, it is predicted that the share of silver bullion in global commodity markets will have grown exponentially. This is due to its advantageous properties as an investment asset, including its affordability and stability, ease of storage and transportability, and liquidity ready to be converted into cash or other assets at a moment’s notice.
Silver is also known for its historic highs but when fluctuations occur, they tend to be milder than other commodities such as gold; meaning that investors can capitalize on both potential gains and safer bases while investing.
Collectors too appreciate silver’s beauty and timelessness, prompting increased demand which has only grown since the recovery of silver prices since early 2020.
Demand for Silver Bullion
The demand for silver bullion has been steadily increasing over recent years due to a number of factors, including increasing uncertainty from political developments worldwide and foreign exchange issues facing some countries. Analysts predict that the demand for silver bullion in 2023 will exceed all expectations, as more people turn towards physical forms of investment during times of economic instability or geopolitical tension.
While it has traditionally been coveted as a hedge against uncertainty and a stabilizing influence during periods of economic turmoil, its popularity has only grown in recent years among investors seeking higher returns on their investments.
Other drivers include rising income levels worldwide, which have allowed more people access to investible funds. Additionally, increasing awareness among consumers about investing options such as precious metals through digital media channels accessible on smartphones and computers has further pushed up demand for physical investments like bullion coins and ingots.
Restraints
There are certain factors that may hamper the growth of the market, such as storage costs and theft risks. Furthermore, counterfeiting of silver coins and bars is also a major concern for investors, which may limit their willingness to invest in silver bullion.
Conclusion
The global silver bullion market is expected to grow significantly, driven by increasing demand from investors and collectors. The market is likely to be split between retail and institutional investors, with both types of investments continuing to grow in popularity.
Silver bullion is an attractive investment option due to its cost-effectiveness, portability, and ease of trading. However, certain risks associated with investing in silver bullion such as storage costs and theft risks may limit the growth of the market.
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